Genting Clarifies Genting Malaysia Takeover Intent

Genting Bhd has stated that its previous move involving Genting Malaysia Bhd was not intended to take the company private, but rather to strengthen its ownership position in the subsidiary.

Speaking during Genting Bhd’s annual general meeting, president and chief executive Tan Kong Han addressed shareholder questions regarding the group’s plans for Genting Malaysia. He explained that the objective of the earlier takeover proposal was to secure majority control of the company rather than pursue a privatisation exercise.

The comments follow Genting Bhd’s conditional takeover offer made in October 2025, which was valued at around US$1.59 billion. At the time, speculation emerged that the move could eventually lead to the delisting of Genting Malaysia from Bursa Malaysia.

Tan clarified that the primary goal was to increase Genting Bhd’s ownership stake beyond the 50% threshold. Prior to the offer, the parent company held approximately 49.36% of Genting Malaysia, according to regulatory filings related to the transaction. The filing noted that the offer was designed to secure statutory control of the listed subsidiary.

Genting Malaysia operates a portfolio of gaming and hospitality assets across several international markets. These include Resorts World Genting in Malaysia, as well as casino and resort properties in the United States, the Bahamas, the United Kingdom and Egypt.

Earlier disclosures connected to the takeover proposal indicated that, should sufficient shareholder acceptances have been received, Genting Bhd would have considered removing Genting Malaysia from the stock exchange. The same filing also outlined a potential plan to combine the group’s US gaming assets, including Resorts World Las Vegas LLC and Genting Malaysia’s American operations, as part of a future US listing strategy.

During the meeting, Tan also discussed the group’s growing focus on the United States. He highlighted the progress of Resorts World New York City, which recently became a full-service casino following the award of a downstate New York casino licence. According to Tan, the property is expected to become one of the group’s strongest-performing assets, with further expansion opportunities ahead.

He noted that Genting Bhd currently consolidates Genting Malaysia’s financial results through an existing management arrangement. However, he indicated that future developments in New York could alter the group’s financial structure and require adjustments to how certain assets are managed and reported.

Shareholder concerns regarding share buybacks and market performance were also raised during the AGM. Tan said the company remains cautious about deploying capital and must balance cash allocation priorities, particularly as many shareholders continue to favour dividend payments.

He acknowledged that both Genting Bhd and Genting Malaysia were removed from the MSCI Malaysia Index in 2025 and noted that trading activity and share price performance have not met expectations. He added that some domestic institutional investors face restrictions on investing in gaming-related companies, which has affected demand for the group’s shares.

Tan said the company’s long-term strategy includes expanding its presence in markets that place greater value on gaming and hospitality assets. He pointed to the United States as a key growth market, noting that the country’s regulated gaming environment continues to attract investment and support from international financial institutions.

According to Tan, Genting has continued to receive backing from global lenders, including support for syndicated financing facilities and positive investor interest in its US-dollar bond issuances.