GENM shares jumped over 10% or 22 sen to RM2.36 after the opening bell before easing to RM2.33 at the midday break, still up 8.9% for the day. At this price, the group is valued at RM13.84 billion.
It was the most actively traded stock on Bursa Malaysia in the morning session with nearly 194 million shares changing hands.
Genting shares also rose 7% or 20 sen to RM3.06 at the open before paring its gains to settle at RM3.00 (+4.9%) at the break, valuing it at RM11.63 billion.
Genting – which holds a 49.36% stake in GENM – announced yesterday its VTO bid to acquire the remaining 2.87 billion shares (50.64%), at RM2.35 per share, amounting RM6.74 billion.
This is a premium of nearly 10% to GENM’s closing price of RM2.14 last Friday, before trading of the stock was suspended yesterday. The offer price values GENM at about RM13.6 billion.
If successful, the privatisation would mark the exit of a company listed on the stock exchange in 1989.
GENM holds the flagship Resort World Genting that draws tens of millions of visitors annually. It also operates the group’s key operations in the US and UK.
Mixed reactions on buyout
The buyout bid by the Lim family-controlled gaming and resort operator has drawn mixed reactions from research houses on the valuation and potential upside.
In a note today, Maybank Investment Bank (Maybank IB) said the offer price “undervalues GENM” and fails to reflect several key catalysts that could materially lift its fair value (FV).
For starters, the revaluation of its Miami land, acquired in 2011 for US$442 million (RM1.87 billion) will add 55 sen to its FV. It noted that GENM had attempted to sell it at a market value of US$1.2 billion (RM5.07 billion) in 2023.
The second catalyst is the potential sale of its US subsidiary Empire Resorts’ non-gaming assets to the Sullivan County Resort Facilities Local Development Corp, which could add 30 sen to its fair value.
GENM announced last month that Empire Resorts is disposing of its non-casino properties in New York state for US$525 million (RM2.2 billion) to eliminate its debt, and purchase land.
The third catalyst is the potential award of a downstate commercial casino licence in New York, which could boost value by 48 sen per share after a 10% discount. The award results are expected by Dec 1, 2025.
TA Securities advised shareholders to reject the offer, noting it is not in the best interest of the Genting group to delist GENM given its future fundraising needs.
“This is particularly relevant to GENM’s plan to spend US$5.5 billion (RM23.25 billion) to elevate RWNYC (Resorts World New York City) if it wins the New York casino licence,” it said in a note today.
TA also said that achieving the 75% acceptance threshold required for privatisation could prove difficult, given Genting’s “unattractive offer price”.
Meanwhile, CGS International said the offer provides shareholders “a good opportunity to exit” as it is above its target price of RM1.88.
The group could also face higher operating and capital costs at RWNYC if it secures the New York licence, it added.
“We reckon there is also a possibility that Genting could relist GENM in the future after possibly restructuring it and when there is more positivity towards its earnings outlook,” it said in a note today.
CGS also cautioned that the privatisation may fail given that many shareholders are sitting on paper losses.
It noted the offer price is below its RM2.50–RM3.00 trading range between 2022 and 2024 and offers less than a 10% premium to the recent market price.
Year to date GENM’s shares have inched up 3.6% while Genting has fallen nearly 22%.
Genting executive chairman Lim Kok Thay and his son and deputy CEO, Lim Keong Hui, collectively have a deemed interest of 44.84% in Genting as of April 15, 2025, via their family investment vehicles Kien Huat International Ltd and Kien Huat Realty Sdn Bhd.
According to GENM’s 2024 annual report, Kok Thay, 73, and Keong Hui, 40, have a deemed interest of 49.35% in the group as of March 17, 2025.
Kok Thay is the son of Genting group founder Lim Goh Tong.