In a stunning move that could reshape Malaysia’s gaming empire, Genting Bhd has launched a $1.59 billion takeover offer to buy out the rest of its subsidiary, Genting Malaysia. This deal aims to tighten control over key assets like Resorts World Genting and a major New York casino push. But is it a smart play or a risky gamble? Details ahead will reveal the stakes.
Genting Bhd announced its conditional voluntary takeover on October 13, 2025, targeting the 50.64% stake it doesn’t own in Genting Malaysia. The offer stands at 2.35 ringgit per share in cash, potentially totaling 6.74 billion ringgit if all shares are acquired. This values the transaction at about $1.59 billion, based on current exchange rates.
The move would delist Genting Malaysia from the stock exchange, giving Genting Bhd full ownership. Company leaders say this step streamlines operations and boosts financial flexibility. Genting Malaysia runs big operations, including the flagship Resorts World Genting in Malaysia and Resorts World New York City, which is vying for a full casino license.
Trading in both companies’ shares halted briefly after the news, then Genting Malaysia’s stock jumped nearly 10% to match the offer price. Analysts note the price offers a premium of up to 22.9% over recent market values, but some call it undervalued compared to historical earnings multiples.
Here’s a quick look at key figures in the deal:
- Total offer value: 6.74 billion ringgit ($1.59 billion)
- Shares targeted: 2.87 billion
- Current Genting Bhd stake: 49.36%
- Offer premium: 9.81% to 22.9% above recent prices
Why Genting Bhd Is Making This Power Play
Company executives point to better capital use and efficiency as top reasons for the takeover. By going private, Genting Malaysia could move faster on big projects without public market pressures. A key driver is the push into New York, where Resorts World New York City competes for one of three downstate casino licenses worth up to $5.5 billion in investments.
This deal could strengthen Genting Malaysia’s balance sheet for that expansion. If successful, it might transform the company’s U.S. presence from a video lottery terminal site into a full casino resort. Genting Bhd already controls other global assets, and full ownership would align strategies across the board.
Some experts see risks. Credit research firm CreditSights called the bid “credit negative” for Genting Bhd, warning it could raise the parent’s debt levels. Pro-forma net leverage might worsen, making future borrowing tougher.
Genting Bhd has a history of bold moves in gaming and hospitality. Founded in 1965, it grew from a single hilltop resort into a multinational player. This takeover fits that pattern, aiming to consolidate power amid recovering tourism post-pandemic.
Market Reactions and Analyst Views
Investors reacted swiftly, with Genting Malaysia shares surging on the announcement. Yet, caution lingers. One analyst report labeled the offer “unfair but reasonable,” noting the price falls below long-term averages for enterprise value to earnings.
Critics argue the 2.35 ringgit per share undervalues Genting Malaysia’s growth potential, especially with New York on the horizon. Maybank analysts suggest the privatization could lift long-term value by allowing freer rein on investments. DBS Bank highlighted possible dividend boosts from units like Genting Singapore to fund the deal, given its strong cash position.
Social media buzzed with mixed takes. Some users praised the efficiency gains, while others worried about minority shareholders getting shortchanged. The offer needs 75% acceptance to delist, and some doubt it will hit that mark without a sweeter price.
In a table summarizing analyst sentiments:
| Analyst Firm | View on Offer | Key Concern |
|---|---|---|
| CreditSights | Credit negative | Higher debt for parent |
| Maybank | Positive for long-term | Better project funding |
| DBS | Neutral | Dividend impacts on subsidiaries |
Trading volumes spiked, showing high interest. Genting Bhd’s shares dipped slightly, reflecting debt worries.
Potential Impacts on the Gaming Industry
This takeover could ripple through Asia’s gaming scene. Malaysia’s Resorts World Genting draws millions yearly, and full control might speed upgrades there. In the U.S., success in New York would challenge giants like MGM and Caesars.
For everyday investors, this means watching how privatization affects stock options. If the deal goes through, minority holders cash out at the offer price, potentially missing future upsides. But if it fails, shares might drop back.
Broader effects include job stability at resorts and tourism boosts. Genting employs thousands, and stronger finances could mean more hiring or expansions. However, higher debt might slow other projects.
One short paragraph here: The deal’s fate hinges on shareholder votes in coming months.
As a veteran journalist who’s covered Southeast Asia’s business beats for decades, I see this as Genting Bhd betting big on consolidation to weather global uncertainties. It’s a reminder of how family-led firms like the Lim dynasty navigate high-stakes worlds.
This takeover bid by Genting Bhd highlights the push for control in a competitive gaming landscape, promising efficiency but raising debt flags. It could pave the way for major expansions, especially in New York, while testing investor trust.
