Genting Group, after increasing its stake in Genting Malaysia by 2.02%, has exceeded a 57% shareholding, triggering a mandatory takeover offer. The acquisition price remains unchanged at 2.35 ringgit per share, but the independent advisor Kenanga Investment Bank outright stated "the price is too low," recommending shareholders to reject it. They estimate the intrinsic value of Genting Malaysia to be between 3.48 and 3.77 ringgit, which is equivalent to a discount of over 60%. Honestly, the price is indeed a bit low, no wonder the advisor is advising so.
Genting Group initially launched a voluntary takeover offer in early November 2025, and after acquiring 114.47 million shares, its shareholding increased from 49.44% to 57%, directly triggering the "over 50% must make a mandatory acquisition" clause in Malaysian acquisition regulations. Interestingly, although the offer turned mandatory, the price did not change, as the group had not purchased shares at a higher price in the past six months. The deadline for accepting the offer has also been extended to 5 PM on December 1, 2025.
Mandatory Acquisition Trigger Point: Owning over 50% is Key
With Genting Group's shareholding increasing from 49.44% to 57%, a significant shift in control has occurred. Simply put, owning more than half necessitates a mandatory acquisition, but the price has not been agreed upon. According to Malaysian acquisition regulations, once a subsidiary's shares exceed 50%, a mandatory takeover offer must be issued. This increase occurred on November 13, 2025, with Genting Group and its concert parties collectively holding over 57% of Genting Malaysia's circulating shares.
Price Dispute: Independent Advisor Questions Pricing Fairness
Kenanga Investment Bank directly pointed out that the acquisition price represents a discount of 32.47% to 37.67% from the intrinsic value, considering it "unfair and unreasonable." Nomura Securities analyst Tushar Mohata also thinks 2.35 ringgit is too low, with a target price of 2.70 ringgit, suggesting the company has undervalued, especially the expected revenue from the New York casino license. He is concerned whether Genting Group can reach the 75% shareholding required for delisting unless the price is raised. The price is indeed a bit low, no wonder the advisor recommends rejection.
Strategic Intent: Privatization to Consolidate New York Casino Layout
Genting Group plans to achieve privatization through acquisition, aiming to better control Genting Malaysia, especially its shares in Resorts World New York and Resorts World Catskills. If the New York casino license is successfully approved, these assets' value will significantly increase. Genting Malaysia currently operates the flagship hotel Resorts World in Malaysia and has businesses in global markets such as the UK, Egypt, and the Bahamas. Genting Group is striving to enhance control, but shareholders have not fully accepted the acquisition terms, and the prospects for privatization remain uncertain.
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