13 minutes
PETALING JAYA: Shares of Genting Malaysia Bhd slumped as much as 14.7% to a low of RM3.08 this morning on concerns over the acquisition of loss-making Empire Resorts Inc for RM538.8 million.
At the midday break, the stock slipped 41 sen or 11.4% to RM3.20 on 209 million shares done.
Hong Leong Research said it is negative on the news in the short term as the acquisition price implies a premium to the book value (1.5 times 2018 price-to-book value) despite Empire still recording losses.
It also downgraded Genting Malaysia to “hold” with a lower target price of RM3.79 from M4.21 previously.
