Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
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.
I think eventually the might not reduce the rates proposed but could give tax incentives to Genting and if two (2) license also good for ease of monitoring and lesser competition and higher chance of survival and achieve the tax the US want.
New York for them is profitable since 1st day even with slot machine only in Queen but the proposed tax rates is too high even Genting able to turn to full casino faster compare the other 2 bidders which need start from greenfield. That's why yesterday ask to reduce rates compare to the 2 bidders or increase their rates for fair competition
Who know later only 2 licenses will be issue.. Resorts World and Hard Rock (which political back strong).. to justify higher tax rates which Genting put 56% table and 30% slot machine while others two only quote 30% and 10%.
Later like Ananda Krishnan privatised Maxis in 2007 and relist in 2009 just 2 yrs+.. wait till GenM back to track consistent yearly billion profit and get New York license then listed again they play all liao..
The privatisation in long term shall benefits Genting as GenM is fairly undervalue while thereafter it may consolidate 100% GenM profit to the group instead of 49.5% while the New York license, Miami assets easily profit US1 billion is good enough to use RM6.7 bil to privatise GenM.. future if GenM relist back also may benefits Genting. GenM current NTA is RM2.07 while privatise at RM2.35, Genting NTA is at RM8.23 now but one main disadvantage will increase Genting debt gearing from 0.43 to 0.5
