Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
Ringfencing Empire's situation to be contained within GenM only - future losses, capital needs, impairments and etc. On the other hand, the move will "protect" Genting / Genting Singapore and other valuable assets of Kien Huat Realty / Genting Berhad.
Funds/insti will probably switch to Gent / GenS due to this move. On the positive side, Gent will get a positive boost/ratings. Kien Huat Realty will be freed from supporting Empire and can now channel their resources into Gent. There is still one more move that LKT can initiate to further protect valuable assets in Gent in the future - pare down GenM's shareholdings :)
That's the beauty of the move for Kien Huat, Eddy. Empire's performance shows up 100% in GenM and yes it will still appear in Gent's books by means of consolidated. Gent can pare down GenM's shareholdings if there is a need in the future. A pp exercise by GenM will lower down Gent's shareholdings naturally :) The reputation/financial drag of Empire on Gent will now be contained within GenM which will be a boost for Gent/GenS; particularly the credit ratings agencies :) Kien Huat can pump in their resources into Gent including the proceeds from the sales of ERL to GenM.
only kien huat gained the profits and advantages. GenM would be the scapegoats and bailer for Kein Huat investment failures. and Kien Huat is privately owned. so the shareholders of GenM are paying the price for a personal Kien Huat own investment failure.
painful decision but it is better than dragging the whole group; contain it within GenM. And there is the on-going shareholders dispute between GAI and RAV Bahamas. The outcome will be contained within GenM too.
