Quick take: Genting Malaysia tumbles 10% on shareholders fret over Empire acquisition

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KUALA LUMPUR: Genting Malaysia Bhd’s (GenM) shares tumbled by over 10% in early trade Wednesday, after announcing that it would acquire Empire Resorts Inc, from Tan Sri Lim Kok Thay, via Kien Huat Realty III Ltd.

’s shares tumbled by over 10% in early trade Wednesday, after announcing that it would acquire Empire Resorts Inc, from Tan Sri Lim Kok Thay, via Kien Huat Realty III Ltd.

GenM said its wholly owned Genting Ltd has proposed to acquire 13.2 million shares in Nasdaq-listed Empire Resorts Inc from its single largest shareholder Kien Huat Realty III for US$128.6mil .The 13.2 million shares currently represents approximately 46% of the shares of common stock held by KH and which also represents approximately 35% of the outstanding voting power of Empire on a fully diluted basis after conversion of all preferred stock currently outstanding into common stock.

The company owns and operates Resorts World Catskills , a casino resort situated on a 1,700-acre site in Sullivan County, New York in America. Empire also owns and operates Monticello Casino and Raceway. RHB Research is neutral on the proposals and believed that the total acquisition price of US$180mil for GenM to own 49% of ER via the proposed JV was insignificant, at c.3.5% and 4.3% of GenM’s market cap and net assets.

 

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The regulators need to intervene in this. Now you know why foreigners leave Msian stock market, acquisition like this, a RPT, doesn't need shareholders approval

How can it fall 10.25% or 37%?

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