Genting’s privatisation move stalls as New York casino win reshapes outlook
Genting Bhd’s attempt to take Genting Malaysia private has failed to secure sufficient shareholder support, coinciding with the group’s major win of a full casino licence in New York.
Genting Bhd’s bid to privatise Genting Malaysia (GENM) has lapsed after the offer closed at just over 73 per cent acceptances, below the 75 per cent threshold required to delist the company. The outcome arrived on the same day Genting’s US subsidiary secured one of New York’s three newly approved full-casino licences, reshaping market perceptions of GENM’s long-term value.
In its filing, Genting confirmed it held 73.133 per cent of GENM as of 1 December, with a further 0.202% pending verification, ending a takeover attempt launched on 13 October. Under Malaysian takeover rules, Genting cannot acquire more than two per cent additional shares over the next 12 months unless granted a waiver, limiting its ability to pursue another privatisation attempt in the near term.
The muted response to the offer reflected shareholder expectations of higher valuations linked to overseas expansion, asset revaluations and the potential upside from the New York development.
New York licence secured
The New York Gaming Facility Location Board has approved all three available full-casino licences, including Resorts World New York City (RWNYC), operated by Genting New York. The project is now awaiting formal issuance from the New York State Gaming Commission.
Development plans include expanding to as many as 800 live table games and 6,000 slot machines by 2029, alongside increasing hotel capacity from 400 to 2,000 rooms. Located on a 29.5-hectare site near John F. Kennedy International Airport, RWNYC aims to attract between 11 million and 15 million annual visitors.
RWNYC is expected to be New York City’s only full-service casino for three to four years, as competing greenfield developments from Hard Rock and Bally’s are not projected to open until around 2030.
Funding and expansion outlook
The New York project carries estimated capital expenditure of US$4–5bn. Analysts believe the expected exclusivity period and stronger revenue outlook have narrowed the anticipated funding gap from US$2–3 billion to around US$1–2bn.
GENM also holds assets that could support financing, including Miami land previously valued near US$1.2bn and 270 million treasury shares worth up to US$200m. With Genting Bhd now controlling 73 per cent of GENM, the company may also issue up to 10 per cent new shares without triggering a rights issue.
Genting continues to expand internationally as competitive pressures rise in Malaysia and across Asia. Analysts expect GENM to explore asset restructuring and additional value-unlocking initiatives while maintaining the benefits of remaining publicly listed.
