Genting shareholders approve sale of HK unit, interest voiced

KUALA LUMPUR: Genting Malaysia Bhd, which has been approached by several parties for its 17.81% stake in Genting Hong Kong Ltd, yesterday received shareholders' approval for the disposal, for a sum of not less than RM1.7 billion.
Following the shareholders' approval, the company has up to 12 months to let go of its stake.
A source said while the group has not received any firm offers, several parties have approached it on the disposal.
Genting Malaysia will now engage investment bankers and brokers to advise them on the next step of the sale process Genting Malaysia's board of directors declined to speak to reporters after the EGM.
On May 11, 2015, its indirect wholly-owned subsidiary Resorts World Ltd proposed to sell the entire 1.4 billion ordinary shares of US$0.10 each in Genting Hong Kong, representing 17.81% of the total issued and paid-up share capital of Genting Hong Kong, of which the minimum disposal share price shall not be less than US$0.33 (RM1.23).
The cash proceeds will be utilised to partly fund the RM5 billion Genting Integrated Tourism Plan (GITP), which will involve the development, expansion and refurbishment of the hotels, theme park and infrastructure at Resorts World Genting, as well as the company's future investments and/or working capital.
A shareholder whom declined to be named told SunBiz that the resolution was easily passed, as shareholders did not raise any questions on the proposed disposal plan.
"Majority of the shareholders are happy on the results because maybe through the sale we can get more dividend and the money (cash proceeds) can be used to earn more money," he said.
Genting Hong Kong is headquartered in Hong Kong. It is involved in cruise and resort businesses through Star Cruises, Norwegian Cruise Line and Resorts World Manila.
The audited net asset of Genting Hong Kong and its subsidiaries as at Dec 31, 2014 was US$3.194 billion (or equivalent to RM11.3 93 billion), or US$0.40 (or equivalent to RM1.43) per Genting Hong Kong Share.
The original cost of investment of Genting Malaysia in the shares was US$604.1 million (or equivalent to RM2.154 billion), representing an average purchase price per Genting Hong Kong share of US$0.42 (or equivalent to RM1.50). The investment was made between 1998 and 2006.