Here’s a corporate move that’s turning heads in the business world: Genting Bhd has officially crossed the 50% ownership threshold in its bid to take over Genting Malaysia Bhd (GENM), making the offer unconditional. This milestone, achieved on November 3, marks a significant shift in the dynamics of these two Malaysian giants. But here’s where it gets intriguing: Genting’s acquisition of an additional six million shares—pushing its stake from 49.999% to 50.105%—has sealed the deal, but it’s also sparking conversations about the future of GENM’s listing status. Genting has openly stated it doesn’t plan to keep GENM publicly listed, which could mean the end of a nearly four-decade run on Bursa Malaysia for GENM.
According to a statement from Genting’s principal adviser, AmInvestment Bank, the group now holds 2.84 billion GENM shares, excluding treasury shares. The offer, announced on October 13, values GENM shares at RM2.35 each—a nearly 10% premium over the last traded price of RM2.14 before the stock was suspended. This premium reflects Genting’s confidence in the deal, but it also raises questions: Is this a fair valuation, or are shareholders being shortchanged? And this is the part most people miss: If the privatisation goes through, it could reshape the landscape of Malaysia’s gaming and hospitality sectors, where both companies have been major players.
With the acceptance condition now met, the offer remains open until November 24, unless extended or revised. Shareholders have until then to decide whether to accept the deal. Meanwhile, the independent advice circular is expected by November 13, providing shareholders with additional insights to make an informed decision. Settlements for valid acceptances will be processed within 10 days, either via direct bank transfer or cheque, depending on the shareholder’s registration status with Bursa Depository.
On the stock market, Genting’s shares rose by two sen (0.6%) to close at RM3.40 on Monday, valuing the group at RM13.18 billion. GENM’s shares inched up by one sen (0.4%) to RM2.34, bringing its market capitalisation to RM13.9 billion. These movements reflect investor sentiment, but they also leave room for speculation: Are investors betting on the success of the privatisation, or are they hedging their bets?
Here’s the controversial question: Is Genting’s move a strategic consolidation of its empire, or is it a missed opportunity for GENM shareholders who might have benefited from continued public listing? Let’s hear your thoughts in the comments—do you think this privatisation is a win-win, or are there hidden downsides we’re not seeing?
