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yeah, i noticed that too. Not sure whether it has anything to do with the recent Singapore's GRA report - stated that the number of citizens and permanent residents who visited casinos in 2024 totalled 94,000. That’s a decrease of 5.3 per cent year-over-year.
Ouch. ermm. Mgmt strategies for Genting group - no comments. Ideally, such a big conglomerate should at least be disciplined in capital allocation and increasing the value of business over time; value creation if you will.
If exclude GenS SGD$10m cash earmarked solely for RWS developments as mandatory condition for licence renewal, Company no longer cash rich but have high borrowings position. Where to find the $ to fund US bid once successful next year ?
Another sticky topic, Daniel :) not much options to raise cash - bonds issuance, rights issue/pp, sell assets and probably consolidate US assets/ops and listing in US.
Alcohol and tobacco hit with higher excise duties and no additional levies/duties for gaming in budget 2026. That's a relief. Next hurdle - recovery progress for GenS and RWLV.
Huge relief. Additional gaming levies/duties will be disastrous for Genting at this juncture. GenS SGD$10 billion developments need to increase market share and generate additional earnings ASAP since SGD$ weakening significantly vs RM.
It's currently hovering close to myr 800mil ebitda for GenS. The Laurus launched in Oct, so, realistically Q4 results is a better measure of its recovery. Not expecting much from Q3 apart from seasonally higher tourists arrivals into Singapore in Jul and Aug.
3.0 Situations which may warrant suspension
3.1 The Exchange may approve a listed issuer’s request for suspension where -
(a) the listed issuer requires time to prepare and release an announcement relating to a
material transaction, such as -
(i) a very substantial transaction as defined in Chapter 10 of the Listing
Requirements;
(ii) a significant change in the business direction or policy of a listed corporation;
or(iii) any other corporate exercise which the Exchange considers to be material;
(b) the listed issuer intends to -
(i) make a material announcement, including one that falls within paragraph 3.2
below (“Very Material Announcement”); or
(ii) hold a press conference to make a Very Material Announcement,
before the close of trading; or
(c) any other reason which, in the opinion of the Exchange, justifies a suspension.
3.2 Without limiting the above, an announcement relating to any of the following matters will be
regarded as a Very Material Announcement:
(a) an interim financial report;
(b) a bonus issue or fund raising exercise;
(c) a transaction as defined under paragraph 10.02(l) of the Listing Requirements, where the percentage ratio calculated in accordance with Chapter 10 of the Listing Requirements is 25% or more;
(d) a notice of take-over being served on a listed issuer which the public has no prior
knowledge of; or
(e) any other corporate exercise.
privatization since now genting so cheap? or selling some assets or JV. possibly related to US biz. there s no significant development in other regions.
Maybe funds raising via private placement etc. due to Empire & RWLV but unlikely to be rights issue since substantial shareholders need to come out with lots of $ themselves. Borrowings via banks already very high at ~ RM40 billion.
unlikely privatization given the existing leverage. I guessed the only thing we can do right now is to ask the question of - will you subscribe to it if it is rights issue? be prepared mentally.
Bimini resorts, Hudson Valley, Catskills have to go. There is no chance of revival for Hudson Valley and Catskills as both bound to cannibalize each other's footfall traffic; 45 mins apart if you will.
Anyway, another rate cut is expected in two weeks time by the US Fed. Trump is working hard to "enable" the economics data to support for more cuts. Lol, no pun intended.
I am not sure whether its a good idea to sell land for GenM. GenM's credit ratings is not good (mainly due to Empire Resorts) and it will be tough to secure loans without pledging collaterals. Genting's credit ratings is better than GenM. We will have to wait until market closing for the announcement perhaps.
Lol, privatization of GenM up to including delisting of GenM. CONDITIONAL VOLUNTARY TAKE-OVER OFFER BY GENT TO ACQUIRE ALL THE REMAINING ORDINARY SHARES IN GENTING MALAYSIA BERHAD (EXCLUDING TREASURY SHARES) NOT ALREADY HELD BY GENT FOR A CASH OFFER PRICE OF RM2.35 PER OFFER SHARE (“OFFER”).
NTA 2.07 for GenM. in principle, they are offering higher takeover price. but in terms of future valuation and potential, not included in the pricing. for those who hold genm shares for years, they been wiped out by such low takeover price.
42b debt, 22b cash, now need pay 6.7b to privatise. Genting probably facing cash flow later. Their bond rate is 6% above, if pay dividen just 4% max, don't know why they want privatise. Though genm is good business but the cash flow really become problem later, considering their bond rate is higher than dividen paid to shareholder. GenM shareholder untung, totally bailed out of this sinking ship (if buy cheaper than RM2.35)
think further, Gemini :) LKT is a businessman. What could possibly happen after in control of all the assets under Genting Berhad? Is there a way to make money from these US assets?
Hold on to the gearing and cashflow risk for Genting first, daniel. The potential following step after privatization of GenM could unlock the value of Genting Berhad; if it happens.
Cheng,genting big chance go up one………….i still got 288,293,288,293,294…….but...g that day I sell all my 283 at 290………..genting need funding one,the boss will not private genting………..private company not easy to borrow big money from bank especially not esg company………..genting gogogo………..
Corporate exercise to prepare for the USD$ funding for RWNYC due to Genting’s better credit rating. Funding for all US operations are not going to be easy and expensive too since existing debt level already at 42b.
Definitely. A lot of “restructuring” and funds required for their overseas operations in the US. GenS facing a lot of headwinds too unless recent transformation (Weave, The Laurels, gaming market share, licence extension) starts to show positive results soon.
My other concern is recent quarters/years dividends were funded via increased borrowings rather than real positive increases in earnings. Funding costs will start to increase significantly and global credit collapses will force risks rethink.
Ermm. Not exactly true. You are not the first one to mention dividend paid from borrowings and it's understandable. The confusion probably came from seeing net income figure lower than dividend payout? If that's the case, that's not how it works.
When previous GenM QRs in losses, attractive quarterly dividends continued to be paid out when earnings should be used to fund CAPEX, investments etc. Excess monies not required for CAPEX and investments should only then be paid out as dividends. It is always prudent to continue as a cash rich company and not to resort to high borrowings, unless absolutely necessary.
ermm... capex particularly on US assets are not doing well thus far; high capex low returns. nothing much can be done for GenM shareholders. Some if not all, may sell GenM and convert to Gent while some will never touch Genting group's stocks again.
GenM shareholders with high average cost will need to convert to Genting. However, upon recovery, like you said, some will never touch Genting group stocks again as US assets are not doing well. Let’s see Institutional Funds reaction from Vanguard etc.
GenM definitely a cash cow prior to the acquisition of Empire Inc. etc. Funding and CAPEX for US assets might not have adequate returns due to the high level of challenging competition for gaming market share outside Malaysia.
Look forward to the privatization exercise particularly details of the following: Source of funding - The Total Cash Consideration will be fully satisfied via a combination of debt financing of up to approximately RM6.3 billion and internally generated funds.
No longer competitive based on economic assumptions on competitive landscape and licensing conditions. CAPEX and investment in US assets and NY casino licence might not have adequate returns vs risks.
that would mean higher chance for Genting to secure license in NY but facing higher risk and competition as highlighted by MGM. Genting has an advantage as it already operating a partial casino and easier to upgrade to full fledge casino within 6 months.
Congrats everyone. Lets enjoy the privatization ride first :) As for the NYC casino bid, LVS dropped out from the bid too. The biggest risk is the online gaming legislation for NY; legislator pushing hard for this.
some will switch over to Gent while some will not. It will be the same for funds/institutions :p Approx 3mil volume total shorts yesterday. Lets see what is the net short positions over the next few days :)
Thank you, Mr. Market. Its been an intense one year plus of investment and I dont have the nerve of steel. I wished everyone make a lot of returns from Gent.
congrats, fb. sounds good as long as you have the nerve of steel :) You may want to keep an eye on what happens after GenM privatization. May take a year or two though and you will have to manage it until then :)
if you were in the market back when Getting secured the Singapore casino license, you would know that appreciation of 1.50-2.00 is normal. that was more than 15 years ago. with current value, easily 2.50-3.00 when the news is out.
All IN on US assets investments. Ride with it for those that have the guts and higher risks tolerance. Oldies like me happy with calculated risks returns.