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Please understand the difference between Genting Berhad’s own debt and the whole Genting Group’s debt.
The RM45.2 billion is the whole group’s debt, including Genting Singapore, Genting Malaysia, Genting Plantations and other subsidiaries. It is not all owed by the parent company alone.
If Genting Berhad’s own debt is RM6.3 billion, the RM1.25 billion rights issue equals about 19.8% of that amount.
But only RM800 million will be used to repay debt. The rest is mainly for working capital and expenses.
The group’s debt still matters, but investors deserve a clear explanation of who owes what. Genting should explain this better.
I worry that scary headlines may cause small investors to panic and sell cheaply. However, there is no proof that someone is doing this on purpose.
Understand the facts before deciding. Don’t sell just because a headline scares you.