Genting Malaysia set for delisting as Genting Bhd launches RM6.7b takeover, offering RM2.35/share to minority shareholders

KUALA LUMPUR, Oct 13 — Genting Bhd has announced plans to privatise Genting Malaysia Bhd (GENM) through a RM6.74 billion buyout, offering RM2.35 per share to minority shareholders.

The proposed acquisition involves 2.87 billion shares, representing 50.64 per cent equity interest in GENM, and will be financed through RM6.3 billion in debt and internally generated funds.

According to a takeover notice filed with Bursa Malaysia today, the offer represents a premium of approximately 18.5 per cent over GENM’s five-day volume-weighted average market price up to October 8, 2025.

“The proposed privatisation will allow Genting Malaysia to pursue its long-term strategies and operational plans without the pressures of short-term market expectations,” Genting Bhd said in the filing.

The deal will be executed via a selective capital reduction and repayment exercise, subject to shareholder and regulatory approvals.

Genting currently holds a 49.36 per cent stake in GENM and aims to consolidate control to streamline decision-making and enhance operational efficiency.

The offer is conditional upon Genting receiving sufficient acceptances to push its stake beyond the 50 per cent threshold.

Once the offer becomes unconditional, Genting must accept all valid acceptances submitted by the closing date.

The company said it does not intend to maintain GENM’s listing status and will apply to Bursa Securities for delisting if its aggregate holding reaches 90 per cent.

It will also seek delisting if the public shareholding spread falls below the required 25 per cent as a result of the offer.

GENM, listed on the Main Board of Bursa Malaysia since December 22, 1989, is primarily involved in leisure and hospitality services, including the integrated resort business at Genting Highlands.

The company also operates internationally in the United States, United Kingdom and the Bahamas.

In the financial year ended December 31, 2024, GENM posted a profit after tax and minority interest of RM251.2 million, with consolidated net assets of RM11.92 billion.

“If the bid is successful, significant capital investment is required to implement the abovementioned proposal,” Genting said.

“In this regard, Genting believes that with control over Genting Malaysia clearly established through its majority ownership of Genting Malaysia shares, the overall financial profile of Genting Malaysia will be further enhanced as Genting will be better placed to lend the Genting Group’s financial strength and network to support the development of this significant project,” it added.

The group is currently bidding to develop a US$5.5 billion (RM23.2 billion) integrated resort destination in New York and views the privatisation as a strategic move to strengthen its financial profile.

The offer provides minority shareholders an exit opportunity at a premium ranging from 9.81 per cent to 22.9 per cent above GENM’s market prices over the past 12 months.

CIMB Investment Bank Bhd has been appointed as the principal adviser for the exercise.

Further details and the proposed timeline will be announced pending regulatory review and shareholder engagement.