Genting Malaysia, owner and operator of Malaysia’s Resorts World Genting, has confirmed it is the parent company of GMM S.A. – the entity that pulled off a surprise last minute move by submitting a bid for a Macau gaming concession on Wednesday.
In a filing to Bursa Malaysia overnight, Genting Malaysia described GMM as an indirect subsidiary and said it hoped to win a new 10-year gaming concession for the operation of casino games of fortune in Macau.
“This represents an opportunity for Genting Malaysia to expand its business in the Leisure and Hospitality sector, diversify its geographical footprint and participate in the recovery prospects of the Macau SAR gaming segment,” it said.
“Genting Malaysia will make appropriate announcements once there is more clarity on the company’s position in relation to its bid.”
According to Maybank IB analyst Samuel Yin Shao Yang, should GMM win one of the six concessions on offer, it would almost certainly lease Treasure Island Hotel Macau, located alongside Nam Van Lake, once construction is complete in December – just in time for the new concessions to kick in from 1 January 2022. Treasure Island was previously dubbed Resorts World @ Macau and is 37.5% owned by Genting Hong Kong – Genting’s cruise ship arm which is currently in liquidation.
It remains unclear whether Genting Malaysia would buy out Genting Hong Kong’s stake given liquidators are currently selling off the latter’s assets, however the company already sold half of its original 75% stake to Yoho Group founder Ao Mio Leong in November 2020 for HK$750 million (US$96 million). Genting Hong Kong said at the time that it would look to sell off its entire stake.
On Genting Malaysia’s entry to the Macau concession tender, Yin said, “We are lukewarm on this development as China’s zero COVID policy has hit Macau hard relative to Genting Malaysia’s existing operations in Malaysia and the west.
“That said, our view may change drastically for the better should China lift its zero COVID policy. In any case, it is early days yet.”
Investment bank Nomura wrote earlier this week that it expected Genting Malaysia’s investors to be somewhat cool on the prospect of the company entering the Macau market while the company is still recovering from the COVID-19 pandemic.
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