KUALA LUMPUR, October 14 — Genting Bhd has unveiled a RM6.74 billion plan to privatise Genting Malaysia Bhd (GENM), offering RM2.35 per share to minority shareholders in a move that could see GENM delisted from Bursa Malaysia.
The proposed acquisition covers 2.87 billion shares, representing a 50.64 per cent equity interest, and will be funded through RM6.3 billion in debt and internally generated funds. The offer represents an 18.5 per cent premium over GENM’s recent five-day average price and aims to streamline operations by consolidating full control under Genting Bhd.
The group said privatisation would allow Genting Malaysia to focus on long-term strategies without the constraints of market fluctuations. Once the offer becomes unconditional, Genting will proceed to delist GENM if its stake reaches 90 per cent or if the public shareholding spread falls below 25 per cent.
The move also positions Genting to strengthen its financial profile as it bids to develop a US$5.5 billion integrated resort project in New York. CIMB Investment Bank Bhd has been appointed as the principal adviser for the exercise, with further details to follow pending regulatory and shareholder approvals.
