Genting’s Bold Play: RM6.74 Billion Bid to Take Genting Malaysia Private

Genting Berhad has launched a conditional voluntary takeover bid worth RM6.74 billion (≈ US$1.59–1.6 billion) to acquire the remaining 50.64 percent of Genting Malaysia Berhad (GENM) that it does not already own, offering RM2.35 per share. Presently, Genting Berhad holds about 49.36 percent of GENM, and if the offer succeeds, the parent will gain full control over its casino and hospitality arm.

The move is strategically timed. Genting has signalled that consolidating control over GENM will improve its capital allocation flexibility and strengthen its financial standing, particularly as it eyes a major expansion in New York. GENM currently operates Resorts World New York City, and Genting has proposed a US$5.5 billion integrated resort expansion there, contingent on securing a full downstate New York casino license.

Analysts are divided over the valuation and the risks involved. Some like Maybank argue that the offer price fails to factor in upside catalysts—such as potential revaluation of Genting’s Miami land and a successful New York bid—that could push fair value higher. Others, such as TA Securities, caution that the offer’s valuation multiples are modest and warn that delisting GENM could limit future fundraising capability. The offer represents a premium to recent trading levels—around 9.8 percent over the latest price—and financiers expect it to be funded via a mix of RM6.3 billion in debt and internal cash reserves.

If Genting succeeds—and reaches at least 90 percent ownership—it may delist GENM under Malaysia’s compulsory acquisition rules. This would give Genting full operational discretion over capital deployment, unencumbered by minority shareholder pressures. But it also concentrates risk: Genting’s debt will increase, gearing could rise, and the unclear future regulatory environment in New York adds an element of uncertainty.

In the bigger picture, this takeover underscores how global casino-resort groups are reorganizing ahead of large, capital-intensive expansion projects. For Genting, the battle for New York is pivotal—it could redefine its U.S. presence and revenue base. But in consolidating GENM, Genting is assuming more direct risk and placing significant faith in its growth play in New York. The next few months will reveal whether the gamble pays off or becomes a costly bet.