Malaysian casino giant Genting Bhd has issued medium term notes with a nominal value of MYR900 million (US$216 million), the proceeds of which it said will be used to partially finance its efforts to fully acquire subsidiary Genting Malaysia.
The notes form part of a previously announced MYR10 billion (US$2.40 billion) Medium Term Notes Programme.
This latest announcement followed another series of on-market transactions on Monday that saw Genting Bhd’s interest in Genting Malaysia rise to 52.6%.
The company confirmed last week that its conditional voluntary takeover offer for subsidiary Genting Malaysia would proceed after acquiring enough shares on the open market to lift its current holding above the 50.0% threshold.
The offer to shareholders to acquire all remaining shares at a price of MYR2.35 per share will remain open and available until 24 November.
Genting Bhd revealed in October that it plans to delist Genting Malaysia either by gaining statutory control, effective at 75% ownership, or compulsory acquisition should ownership reach 94.94%.
The bid is linked to the group’s desire to own a larger stake in Genting Malaysia’s Resorts World New York City should the property be granted a full commercial casino license as expected.
Aside from Resorts World New York City and Resorts World Catskills parent Empire Resorts, Genting Malaysia also controls the group’s Malaysia flagship Resorts World Genting.
Notably, Maybank Investment Bank has suggested that Genting Malaysia shareholders should reject the takeover offer of MYR2.35 per share because it undervalues the company based on latest projections.
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