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will the funds/insti/shareholders from GenM that accepted the takeover offer initiate/increase position in Genting? The takeover exercise resulted in higher debt for Gent from the takeover exercise but also increases the profits attributable to owners. The higher debt arising from MTN has a short tenure though. Maybe owners are confident to be able to list in US and capital generated from US listing will be able to pare down the debt?
For now seem hard but since Genting have more than 73 percents in hand.. just have to get another 2 percents more will not comply with public shareholdings and can opt to delist GenM.. so those who not accepted might be problem if delist due to compliance issues.
Agreed with you that unlikely to go for US listing without privatization and delisting. GenM becoming illiquid stock as owners and PACs can't buy higher than 2.35 without extending the better price to those that accepted within 6 months after closing date.
Just a matter of time for delisting as 2% will be easily accumulated at 2.34 & 2.35 over a period of time for delisting to take place. Large transactions for GenM can only occur at 2.34 & 2.35.
Ikan Bilis are dealing with Gaming tycoon. The hidden Ace Joker will be used as >100m shares @ 2.35 can be easily accumulated within this week for “regulatory” Bursa delisting (not automatic as it is < 90%) to take place in due course once public shareholdings spread < 25%. Genting already fully compliant based on their full disclosure in their offer documents.
Now, LKT can easily buy back at much lower price < 2.35 to 75% - 90% with delisting looming. Just wait for Share Buyback announcement this evening as already 50m shares transacted within 1 hour of trading !
Lol, limit up. RPT of Empire Resorts to GenM - thats a pro move. 73.13% right at the closing date when many thought that it will not be even close to 70% - thats a pro move. Privatization of GenM to make way for restructuring and US listing - thats a pro move if US listing is successful.
there is no cooling period and offeror can still acquire as long as it is not higher than 2.35. If it is higher than 2.35, the benefit has to be extended to shareholders that accepted the 2.35 offer during the offer period.
There is no automatic 1-year”waiting period” under the Code that says a 73% holder must wait 1 year before buying more — at least nothing in the publicly available Take-over Rules as creeping rules no longer in effect as > 50% and MGO completed. Of course, if subsequent transactions >2.35, previous offerees that accepted have to be compensated accordingly based on on the differential.
High risks for NY casino successful licence bid based on huge CAPEX & expensive borrowings required (instead of internal funds) if we look at the recent closures of casinos in USA & Macau. In addition, Genting total borrowings are rather high now as compared to Cash Rich position previously.
pp wont help in my personal opinion, TN. The only way is to opt for US listing. and that requires restructuring and privatization of GenM unless a win2 approach of special dividend from the sale of US assets which is unlikely now with 73% as of yesterday.
If they cancel the US listing and stop selling the US asset, the boss still wins. They hold extra shares close to the 25% public float. This means they can either, privatise the company in 3–5 years or raise money by issuing new shares without losing control..
Control stays in their hands, while options for expansion or restructuring remain open. Win win for them!
Yes, that's for sure. They will retain the controls of the company but share price of the company will stay depressed due to conglomerate discount. Mr. Market not willing to give it higher valuation comparing to SOTP valuation.
are you referring to genm, jordan? if you look at the shareholdings of genm in annual report - 78.7% shares held by 3.1k shareholders with min 100k shares including Genting Berhad. 73.13% shareholding held by GenT as of yesterday. GenM price came down (supply >> demand) and most likely shareholders with min 100k shares that did not accept the offer changed their mind after seeing Gent holding 73.13% at the offer closing date.
