Genting Announces Conditional Cash Offer to Take Genting Malaysia Private
In a move to consolidate control over its casino and hospitality arm, Genting Group has unveiled a conditional cash offer to acquire the remaining Genting Malaysia shares it does not own. The bid, valued at RM6.74 billion (about S$2.1 billion), was disclosed on October 13 and signals the company’s intention to streamline capital allocation and bolster its financial position ahead of a potential US expansion.
Genting currently holds approximately 49.4% of Genting Malaysia, and the proposed offer would push the conglomerate’s stake above 50% if successful. The company said it would pay RM2.35 per Genting Malaysia share, representing a 9.8% premium to Genting Malaysia’s last traded price of RM2.14 before trading in both stocks was suspended on October 13. The offer is conditional on securing more than 50% of Genting Malaysia’s shares and would be financed with up to RM6.3 billion in debt financing and internal cash.
The resolution to privatize Genting Malaysia underscores Genting’s strategy to strengthen financial flexibility as it eyes large-scale investments, including a possible US$5.5 billion casino project in New York. Genting’s US subsidiary is pursuing a downstate gaming licence, a key component of its broader growth agenda in North America.
Sources familiar with the matter say a controlling stake would enable faster decision-making and more efficient deployment of capital across Genting’s global portfolio, which includes Resorts World Genting in Malaysia and casinos in the United States, the United Kingdom, the Bahamas, and Egypt.
Valuation Context and Market Reactions
Genting’s offer values Genting Malaysia at multiples that, on a 2024 audited basis, translate to approximately 9.1x EV/EBITDA, about 53x earnings, and roughly 1.12x book value. The bid premium reaches as high as 22.9% over Genting Malaysia’s six-month average price, reflecting investor expectations of strategic benefits from privatization and closer corporate alignment.
Market data showed a softening trend for both entities in 2025, with Genting shares down around 26% and Genting Malaysia shares down about 5.3%, as weak earnings and rising costs weighed on sentiment and profitability. The premium offered provides an incentive for Genting Malaysia shareholders to tender their shares, while the conditional nature of the bid maintains the possibility of regulatory and ownership hurdles being navigated before completion.
Strategic Rationale: Why Privatize Now?
By taking Genting Malaysia private, Genting Group aims to strengthen its balance sheet and facilitate large-scale investments without the constraints of public market scrutiny. A contiguously owned structure could help the parent optimize capital allocation, align strategic projects across geographies, and potentially accelerate regulatory approvals for high-stake ventures such as the New York downstate project.
Genting has signaled that the move would not be intended to maintain Genting Malaysia’s listing if public float falls below regulatory thresholds. The company may pursue delisting or a compulsory acquisition if it attains a 90% stake, signaling a willingness to pursue full integration of the unit into its broader conglomerate strategy.
Regulatory Path and Delivery Timeline
The deal remains subject to securing more than 50% of Genting Malaysia’s shares and is expected to be completed by year-end 2025, contingent on approval from the Securities Commission Malaysia and other customary regulatory clearances. Trading in both Genting and Genting Malaysia shares was set to resume on October 14 following the announcement.
As Genting presses ahead with its privatization plan, stakeholders will be watching how the group balances debt financing commitment with the need to fund growth initiatives, including potential expansion into the US market and ongoing operational priorities across its global portfolio.
Implications for Stakeholders
For Genting Malaysia shareholders, the offer provides a liquidity option at a premium to recent trading levels. For Genting Group, privatization could unlock a smoother pathway to capital-intensive investments and potential delisting benefits, should regulatory thresholds be met. The broader market will assess how the deal reshapes risk, valuation, and future earning prospects for one of Asia’s leading casino and hospitality groups.
