Advisor Urges Genting Malaysia to Reject Takeover Bid as Analysts Doubt Higher Offer

An independent adviser has recommended that minority shareholders of Genting Malaysia Berhad (GENM) reject the takeover offer made by its parent company Genting Bhd, stating that the RM3.10 per-share bid undervalues the operator’s assets and long-term prospects. The adviser noted that GENM’s diverse portfolio—including Resorts World Genting in Malaysia, Resorts World New York City, and operations in the UK and Bahamas—holds substantial intrinsic value that is not adequately reflected in the offer price.

Market analysts similarly argue that a “substantially increased” offer from Genting Bhd is unlikely, given financial constraints and weak market conditions surrounding the parent group. They point to Genting Bhd’s already-elevated gearing levels and recent bond issuances, making a materially higher bid improbable without causing additional balance-sheet pressure. External commentary from investment research houses echoes the view that the offer price sits at the lower end of valuation models when compared to expected future earnings and recent global casino-industry recovery trends.

Investor response has been cautious, with some funds privately indicating that they see limited strategic benefit in privatizing GENM at the current valuation. Several analysts highlight that GENM’s casino monopoly in Malaysia, combined with stabilized visitor volume post-pandemic and improving margins from Resorts World Genting, should command a premium rather than a discount. Comparative statements from regional market reports, referencing uplift in Singapore’s and Macau’s gaming recovery, reinforce expectations that GENM stands to benefit from improving Asian tourism dynamics.

Broader industry analysis also notes that the proposed privatization attempt resembles past Malaysian conglomerate privatization patterns, where initial general offers were later withdrawn or failed due to pushback from minorities. In this case, the independent adviser’s clear recommendation to reject—paired with analysts’ skepticism of any improved bid—creates substantial headwinds for Genting Bhd’s takeover ambitions. As a result, market watchers expect the offer to face significant resistance unless a valuation closer to fair market value is proposed.