Genting Malaysia said it’s seeking a mandate from shareholders to sell its entire 17.8 percent stake in the group’s Hong Kong-listed unit Genting Hong Kong for a price of not less than $0.33 a share in cash, the company said in a Bursa Malaysia filing.
The total number of shares being sold is 1,431,059,180, meaning Genting Malaysia will raise at least $472.2 million in gross proceeds.
The mandate to sell the stake is valid for a year and says the securities can be sold in either on-market or off-market transactions.
The original cost of Genting Malaysia’s investment was $604.1 million, representing an average purchase price per GENHK Share of $0.42. The investment was made between 1998 and 2006.
Genting says it’s selling the shares as the investment is considered a non-core asset. It will use the proceeds to partially fund the ongoing revamp of its Malaysian property under its Genting Integrated Tourism Plan and for future working capital.
The stock was down 0.7% at $2.80 ($0.36) in Hong Kong trading Tuesday, near the bottom of a 52-week range of $2.22 - $4.22.
Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.
ASIA GAMING BRIEF
PO Box 1139, Macau SAR
Tel: +853 2871 7267
Fax: +853 2871 7264