Genting Bhd’s effort to assume full ownership of Genting Malaysia has concluded without meeting its intended target, leaving the parent company with a 73.13% interest in the operator. The takeover initiative, launched in mid-October, did not achieve the minimum threshold needed to move forward with removing the subsidiary from the Malaysian stock exchange.
Parent Company’s Control Effort Stalls Below Key Threshold
The offer, valued at roughly US$1.59 billion, aimed to acquire the remaining shares of Genting Malaysia that Genting Bhd did not already control. Although the parent company extended the deadline once and continued accumulating shares through market purchases and takeover acceptances, the final percentage remained below the 75% level that would have permitted a delisting.
Genting had initially proposed MYR2.35 per share for the 50.64% stake it did not own when the bid was announced. By early November, its shareholding crossed 50%, making the offer mandatory under Malaysia’s takeover rules. The acquisition deadline was then pushed from November 24 to December 1 to allow more time for additional acceptances, after the stake reached 57.008% in mid-November.
At the conclusion of the offer period, the group disclosed that 73.133% of Genting Malaysia’s shares were in its hands, with a small portion of acceptances still pending verification. The figure remained short of the statutory level needed to start the delisting process. Genting Bhd had previously made clear that if the public shareholding spread fell below 25% following the offer, it would not retain Genting Malaysia’s publicly traded status.
An independent advisor evaluated the MYR2.35 per-share offer during the process and described the proposed price as “not fair and not reasonable,” advising shareholders to “reject” the bid.
According to Market Screener, analysts from DBS Group Research commented on Genting’s decision not to move beyond a 73% ownership level, stating: “Given the absence of any follow-up move to raise its stake beyond 73%, we believe [Genting] is likely comfortable with its current shareholding in [Genting Malaysia] and is unlikely to pursue further acquisitions in the near term.”
New York Casino Developments Influence Outlook
While the takeover outcome limited any immediate delisting plans, Genting Malaysia advanced its position in the United States. Its subsidiary Genting New York LLC, which operates Resorts World New York City, secured approval from the New York Gaming Facility Location Board to operate a casino. A final review by the New York Gaming Commission remains pending before formal issuance of the license.
The approval follows Genting Malaysia’s submission in June of a US$5.5 billion proposal to expand Resorts World New York City into a full commercial casino. Nomura analysts highlighted this development as a key factor affecting shareholder expectations, noting that the earlier takeover proposal did not reflect the company’s selection as one of the winners of the New York license.
Nomura also assessed that achieving a delisting would require a shareholder vote and a reasonable exit arrangement for minorities, adding that opposition of more than 10% could defeat the effort. Analysts wrote: “This exit offer and the delisting application will also be evaluated by an independent advisor.”
Genting Bhd has outlined that its strategy toward Genting Malaysia involves either gaining statutory control at 75% ownership or, in the more distant scenario, pursuing compulsory acquisition should its stake ever reach 94.94%.
Meanwhile, investment commentary continues to track the long-term financial impact of the company’s U.S. casino expansion. Maybank Investment Bank analyst Yin Shao Yang estimated that Genting Malaysia’s net profit from the project could “peak at a whopping” 1.93 billion ringgit in 2030.
Share movements reflected the market’s reaction to the halted privatization attempt. Genting Bhd fell 2.1% on Tuesday, December 2, after climbing earlier in the session, and Genting Malaysia dropped 4.3% after a brief rise.
