Genting Moves to Take Genting Malaysia Private
Genting Berhad announced on October 13 a conditional cash offer to acquire all remaining shares of Genting Malaysia Berhad it does not already own. Valued at RM6.74 billion (about S$2.1 billion), the proposal aims to privatise Genting Malaysia and consolidate control over the group’s casino and hospitality arm. With Genting already holding roughly 49.4% of Genting Malaysia, the bid seeks to push the conglomerate toward a simple majority or higher stake, enabling swifter capital allocation and larger-scale investments.
Why the Bid Makes Sense for Genting
Genting said that gaining majority ownership would strengthen its financial position ahead of a potential US$5.5 billion casino project in New York, where its US unit is vying for a downstate gaming license. Management said greater control would simplify decision-making on major capital commitments and allow more efficient deployment of resources across its diversified gaming and hospitality portfolio.
Terms of the Offer
The proposal values Genting Malaysia at RM2.35 per share, a 9.8% premium to Genting Malaysia’s last traded price of RM2.14 before the suspension of trading on October 13. The offer is conditional on Genting securing more than 50% of Genting Malaysia’s shares. Financing details indicate up to RM6.3 billion will come from debt and internal cash reserves. If a 90% threshold is reached, Genting signalled it may delist Genting Malaysia or pursue compulsory acquisition. Should the listing be retained, regulatory requirements for public shareholding would still apply.
Valuation and Market Context
Market observers note the bid implies valuation multiples of about 9.1x EV/EBITDA, 53x earnings, and roughly 1.12x book value based on 2024 audited figures. The premium to six-month average prices signals Genting’s confidence in the strategic value of a more tightly integrated group, even as both stocks have faced pressure in 2025 amid earnings softness and cost pressures. Genting Malaysia’s portfolio includes Resorts World Genting in Malaysia and a footprint in casinos across the United States, the United Kingdom, the Bahamas, and Egypt.
Strategic Rationale and Potential Outcomes
Beyond stabilising financing for future bets, the bid aligns with Genting’s broader aim of strengthening governance and accountability within its casino and hospitality operations. If the deal succeeds, Genting could streamline capital allocation for large-scale investments, including the venture in New York, while potentially leveraging synergies across its property portfolio and international gaming licenses.
Timeline and Regulatory Hurdles
The offer is expected to be completed by the end of 2025, subject to approvals from the Securities Commission Malaysia and other customary conditions. Trading in Genting and Genting Malaysia shares was paused in mid-October and is anticipated to resume on October 14 as the market digests the announcement and potential ramifications for shareholder value.
What This Means for Stakeholders
For Genting, the move could unlock greater financial flexibility and fortify its balance sheet as it advances its US casino ambitions. For Genting Malaysia shareholders, the RM2.35 per share offer represents a defined exit at a premium to recent trading levels, with the potential for delisting if a controlling stake is achieved. The broader impact on employees, customers, and regulatory relationships will unfold as the deal progresses through due diligence and approvals.
