Gaming and investment conglomerate Genting Bhd is not attempting to privatize its listed subsidiary Genting Malaysia Bhd, according to detailed shareholder commentary delivered by parent company President and Chief Executive Officer Tan Kong Han.
Moving to address investor speculation reported by Sinchew Daily, Tan clarified that the group’s prior financial maneuvers were strictly structured to establish undisputed statutory control over the unit rather than pulling it from public exchanges.
Deconstructing the $1.59 Billion Takeover Structure
The possibility of an imminent privatization or formal delisting had previously generated significant market speculation after the parent firm extended a conditional takeover offer valued at approximately US$1.59 billion in October 2025. Speaking directly to shareholders at Genting Bhd’s annual general meeting on Thursday, Tan explained that the definitive goal of the transaction was to lift the group’s absolute equity holding past the critical 50% threshold.
Prior to launching the conditional offer, Genting Bhd maintained a 49.36% stake in Genting Malaysia, according to regulatory documents submitted to Bursa Securities on November 3 during the initial phase of the takeover exercise. While the group successfully expanded its underlying stake, its cumulative holding remains below the 75% threshold required to initiate formal privatization. Both corporations continue to operate as separate, independently listed entities on the main market of the Malaysian stock exchange.
Cross Border Scale and Synced Financial Statements
Genting Malaysia commands a massive international casino footprint, managing Malaysia’s sole casino monopoly at Resorts World Genting, alongside premier integrated resorts across the United Kingdom, Egypt, the Bahamas, and the United States. According to the group’s historical regulatory filings, had the initial offer received sufficient acceptances to trigger a delisting, the parent company intended to consolidate its US gaming assets, held under Resorts World Las Vegas LLC, with the Genting Malaysia US asset block to create a unified corporate entity possessing sufficient scale to pursue a high-value public listing on a New York exchange.
Tan also addressed the rapid performance acceleration of the group’s US expansion, specifically highlighting the operational launch of its full-scale downstate New York commercial casino license:
Resorts World New York City officially upgraded its gaming floor on April 28, transitioning from an electronic gaming machine facility into a full-service, licensed casino layout complete with live-dealer table games. Tan revealed that while Genting Bhd currently integrates Genting Malaysia’s overall financial results into its primary balance sheet through a dedicated management services agreement, it lacks a parallel arrangement for the New York project.
Financial models prepared by Maybank Investment Bank Bhd indicate that Resorts World New York City is on track to surpass the baseline performance of Genting Highlands in the long term. Tan warned that once the New York destination officially outpaces the Malaysian property, Genting Bhd will no longer be legally permitted to integrate Genting Malaysia’s financial statements, a structural shift that will cause a drastic change to the parent group’s balance sheet and require immediate executive action.
Addressing inquiries regarding share buybacks, Tan stated that management must remain cautious when allocating its finite cash reserves, noting that institutional domestic investors strongly prefer cash dividends. He acknowledged that both Genting Bhd and Genting Malaysia were removed from the MSCI Malaysia index in 2025, which depressed localized trading volumes and reduced demand from domestic pension funds, such as the Employees Provident Fund, which face strict statutory bans prohibiting investment in gaming companies.
Consequently, the group is aggressively focusing capital on the strictly regulated US market, where its syndicated credit facilities and US-dollar bond issuances continue to capture strong support from major New York financial institutions.
