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On paper, it’s about paring down debt. In actual, it’s about increasing shareholding without triggering MGO or buying expensive tickets from open market.
Eddy, I have the same thoughts too. It doesn’t make sense to do the cash call just for RM800M debt repayment to save interest. Furthermore, GB has more than RM4B cash at company level, which makes the RM400 working capital raised even more unnecessary.
Besides that, GB is owning 100% of RWLV comparing to just ~50-70% in GenS/GenM/GenP, therefore making it more susceptible to incur loss in its quarterly/annual results.
Ever since RWLV was built, depreciation charges to Genting has increased ~RM1B a year. Together with interest expenses around RM0.5B a year, RWLV has to make at least RM1.5B in annual ebitda to breakeven. At the current run rate of ~RM500M annual ebitda, there will be at least RM1B of loss coming from RWLV alone. That's why we are seeing profit in almost all other businesses such as GenS,GenM,GenP but still seeing losses in GenB.
@cheng this quarter RWLV ebitda at RM100M. Not as good as last quarter RM200M, but can see their business is pickup up nicely. Last year total annual ebitda only RM250M.
