Genting Singapore results showing gaming segment is still struggling while non-gaming did really well with Oceanarium, Weave and other events. The Laurus opening in Oct should provide further traction to non-gaming segment. However, revenue improvement from non-gaming is still not enough to cover for the gaps from gaming segment. Seems like there are structural change to the gaming segment - losing market share to MBS?

MGM and LVS ditched their plans while RWNYC up the ante to secure it. MGM ditched their US$2.5bil plans as the tenure of the license was 15 years instead of the original 30 years. Gent went all the way to portray the image of backing the bid by "privatizing" GenM.

with the full casino license, conservative calculation on net profit would be around usd500 mil per year. that s y they going full force to secure the license. in the first 5 years, Genting would be the only casino operating until the two competitors completes their development. so conservatively is usd500mil x 5 = 2.5 bil from gaming alone. yet to factor the rooms, fnb, events, etc once the facility is developed fully. now the question is would genting secured the ROI by 10th year?

Related party transactions (RPTs) are permitted in Malaysia but only under strict conditions designed to protect minority shareholders and ensure fairness. However, “unfair” or “unreasonable” RPTs can still occur due to loopholes, weak enforcement, or misuse of discretion. What are the Audit Committee and Independent directors position on such matters ?

spot on, Eddy. That will benefit the owners as Gent/GenM minority shareholders will not get any direct benefit from the listing. Well, unless the privatization fails and did not even meet the 75% threshold. And, if the owners wanted the benefit of US listing still, then, let it be a benefit for every shareholders instead of just the owners :) sell these US assets to the US IPO and return it to shareholders in the form of special dividend.

the owners can buy from open market or increase the offer price if they wanted the direct benefits badly from the US listing. If the owners decided to buy from open market, the chances of privatization will be low as price will be volatile and total cost for the acquisition will be too much. If the owners decided to increase the offer price and lets use Kenanga independent advisor's fair value estimate of 3.48 to 3.77, it will be additional RM7bil plus to increase the shareholdings from current baseline of 55.5% to 90%. Total cost of acquisition will be way higher than RM7bil as previous shareholders that accepted the 2.35 offer will receive additional compensation based on the revised offer.

already extended to 1 dec 2025, the due date is right before new york casino license, if genm won the new york casino license it will impact the valuation, bursa may request gent to redo the valuation with newly added new york casino license. ah thai is scratching head now, never expect kenanga will give such opinion, take the stone and hit his own toe

Lol, and the gung-ho supplemental documents to convince the gaming board that RWNYC should be awarded the full license. Will be nice for Kenanga to use the details in the supplemental documents for the fair value estimation for RWNYC / GENNY :) The current estimate from Kenanga did not include the full casino license scenario.

unlikely to meet 90% at this rate. 75% is tight but that's not what the owners wanted as they want full control instead of getting approvals for restructuring, Vin. If they cant meet 90%, they will aim for 75% at the least and apply for delisting.

No, Eddy. I exited GenM earlier with a small profit after getting to know the push for online gaming in NY which is a threat for land-based casino. RWNYC full casino license was a nice growth story until the online gaming push. I can understand the feeling of those holding for years and now being offered 2.35 which is speechless.

that's true from invested capital perspective, Eddy. Meaning 2.35 + 7 years of dividend could have come up to 3.2 and will be a breakeven comparing to the 3.10 range in 2018/2019. If we include the time factor, an investment at 3.10 for the last 7 years would have returned a total of ~4.00 (capital + interest) assuming it is compounded 4% annually per the fd rate for the ease of calculation. That will come up to approx 20% loss (4.00 versus 2.35+7 years of dividend).

good decision. and those that invested in Gent/GenM typically put in a substantial amount for mid to long term investment hoping for capital growth + collecting dividend in the mean time. Dividend is gone now and GenM will be gone too (possibly delisted if privatization is successful). Tough time for GenM shareholders now - to accept or reject the offer.

Genting vs genm...
Base on genm currently price ... gent can't buy the shares at all... BUT...
Is LKT really failed to takeover?
Let's think twice .. LKT Already plan this takeover plan since 1 year ago..
Or he still got other plan for next ?
if I am LKT ..I will collect huge lots on 1.47++ and make it 60% before announce takeover plan ...
why he doesnt want to do this ?

Kenanga's annoucement today showed GenT bought 2.37 last Friday, it may take days to come out with a revised offer price to match 2.37, with an extension of at least 14 days, let's wait. With this price increase, more will be willing to join GenT perhaps?

Many different possibilities. It can also be a Hollywood drama for show of support to convince gaming board to issue RWNYC the license due to parent Genting Bhd holding majority stakes in GenM? And there are only two finalists for the 3 NY full casino license. He just need to complete the show and doesnt really matters if he is not successful to privatize GenM now. He can try again next year and take his time accumulate?

Should not be at the expense of minority shareholders, Francis :) well, the supplemental doc showing RWNYC is gung-ho about the prospect of full casino license and if that's the case, why not offer higher price to privatize GenM? Everyone will be happy except the owners :)

Agree ! Cheng ! :-)
I noticed at the moment
genting investor vs genm investor. .
but lkt sure will know since the takeover price for genm 2.35...99% of investor sure unwilling to accept the offer unless only wait is revise the offer price to RM2.45-2.50..
Win Win !

The funding for GenM privatization will be done through debt financing and just a matter of 6bil+ or 7bil+. 90% shareholdings at this rate is really tough and unlikely by 1st Dec. 75% will be really tight. Will be interesting to see the outcome by 1st Dec.

Agreed, Vin. And owners can spend additional 1bil+ for the higher offer price from their private vehicle instead of load the debt to Genting and sell the stakes In the future if GenUS is listed to recoup the privatization cost

Not sure about rumors, Francis. Genting's MTN program can be used to issue up to 10bil bonds. 2bil+ used so far. It will drag Genting's earnings if the total debt for the privatization is loaded to Genting. And yet to include the usd5.5bil NYC expansion plans if they secure the license.

another route for listing of GenUS will be for Gent and GenM to sell the US assets (spin-off) to GenUS/Kien Huat Realty and the returns of the sale to be distributed to every Gent&GenM shareholders via special dividend :)