Casino Billionaire Lim Kok Thay to Take Genting Malaysia Private in $1.6 Billion Deal
Kuala Lumpur – Malaysian billionaire Lim Kok Thay’s conglomerate is moving to consolidate it’s casino and hospitality businesses, announcing a $1.6 billion (6.7 billion ringgit) deal to acquire the remaining shares of Genting Malaysia it does not currently own. the move will result in Genting Malaysia being delisted from the Bursa Malaysia stock exchange.
According to a regulatory filing on Monday, the company will purchase approximately 2.9 billion shares,representing 50.6% of Genting Malaysia, at a price of 2.35 ringgit per share in cash. Shares of Genting Malaysia jumped 8.9% following the declaration,while its parent company’s stock rose 3.9% in early trading.
The acquisition will be funded through a combination of loans and internal funds, wiht a completion timeline yet to be disclosed.
Gaining full ownership of Genting Malaysia is expected to strengthen the group’s financial position and provide capital for future projects, including a potential $5.5 billion casino resort in Queens, New York, contingent on securing a new gaming license. Genting currently operates casinos in New York, Las Vegas, the Bahamas, Malaysia, and Singapore.
The deal follows Lim Kok Thay’s transition from Group CEO to Executive Chairman of Genting in Febuary,after nearly two decades leading the company. This shift occurred amidst declining contributions from its Singapore and U.S. casinos,with Genting’s 2024 net profit falling 11% to 2 billion ringgit.
Founded in 1965 by Lim’s late father, Lim Goh Tong, Genting began with a mountaintop casino resort in Genting Highlands. The conglomerate has as expanded into diverse sectors including energy, power generation, real estate, life sciences, and biotechnology.
Lim Kok Thay, with a current net worth of $1.8 billion according to Forbes‘ real-time data,has overseen Genting’s global expansion.The group is currently investing S$6.8 billion ($5.1 billion) in upgrading Resorts World Sentosa in Singapore, adding 700 hotel rooms and a new theme park.