Key Points
- Parent company CEO explained 2025 acquisition aimed at securing majority ownership rather than delisting Genting Malaysia
- Pre-offer ownership stood at 49.36%; delisting requires minimum 75% threshold
- New York City’s Resorts World facility commenced full casino operations on April 28, 2026
- Company leader predicts NYC property will eventually surpass Malaysian Resorts World Genting performance
- MSCI Malaysia index dropped both Genting entities from its portfolio during 2025
The chief executive of Genting Bhd has addressed questions surrounding the company’s acquisition strategy for its Malaysian subsidiary. Speaking candidly, the CEO emphasized that the October 2025 takeover bid centered on securing controlling interest rather than pursuing full privatisation.
During Genting Bhd’s annual shareholder gathering on Thursday, CEO Tan Kong Han fielded queries from investors regarding the conglomerate’s strategic direction for Genting Malaysia.
Breaking Down the Acquisition Strategy
The conditional takeover proposal, launched in October 2025, carried an estimated value of approximately US$1.59 billion. Prior to this offer, the parent entity maintained a 49.36% ownership position in its subsidiary.
According to Tan, the primary objective was elevating this ownership percentage beyond the critical 50% threshold, thereby establishing statutory control for Genting Bhd. He characterized the stake increase as “fortunate,” despite falling short of the 75% required for complete privatisation or exchange delisting.
Corporate filings from Genting Malaysia in November 2025 validated this strategic approach, confirming the parent company’s pursuit of statutory control. Those same disclosures indicated Genting Bhd had no plans to preserve Genting Malaysia’s presence on Bursa Securities.
Yet the documentation revealed broader ambitions. Should acceptance levels reach delisting thresholds, Genting Bhd planned to merge its American gaming portfolio with Genting Malaysia’s US holdings, ultimately seeking a stock exchange listing in America.
Both corporations maintain listings on Malaysia’s stock exchange. Genting Malaysia operates gaming establishments across Malaysia, America, the Bahamas, Britain, and Egypt.
Manhattan Casino Commences Full-Scale Operations
US market expansion dominated discussions at the shareholders’ meeting. Tan devoted considerable attention to Resorts World New York City, which he labeled the “New York project.”
The facility transitioned to full-service licensed casino status on April 28, 2026. Previously operating exclusively as an electronic gaming venue, it now features live dealer table games, with additional development planned under its enhanced licensing.
Tan projected the Manhattan property would ultimately exceed Resorts World Genting’s performance metrics in Malaysia, without specifying exact benchmarks. Maybank Investment Bank similarly forecast in May 2026 that the New York location possessed long-term potential to overshadow the Malaysian flagship.
The CEO highlighted a significant financial consideration linked to this expansion. Currently, Genting Bhd incorporates Genting Malaysia’s financial statements into consolidated reports through a management services framework. However, no equivalent arrangement exists for the New York City operation.
When the American property’s performance surpasses the Malaysian resort, Genting Bhd will lose the ability to consolidate Genting Malaysia’s finances. Tan characterized this as potentially triggering “very drastic changes” to financial statements, necessitating proactive management responses.
Shareholder Composition and Market Standing
Addressing share repurchase inquiries, Tan emphasized prudent cash management, noting shareholder preference for dividend distributions.
He acknowledged both Genting Bhd and Genting Malaysia were deleted from the MSCI Malaysia index throughout 2025. Trading activity and stock valuations remain beneath projections, while domestic institutional investment appetite has diminished.
Certain prominent Malaysian investment funds, notably the Employees Provident Fund, face regulatory restrictions preventing gaming sector investments. Tan stressed the necessity of accessing markets where gaming investments receive favorable treatment, specifically referencing the United States.
He noted international financial institutions, including New York-based banks, have supported the group’s credit arrangements. The company’s US-dollar denominated bond offerings have likewise garnered encouraging market response.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
