Genting Bhd’s ongoing voluntary takeover offer to acquire its subsidiary, Genting Malaysia Bhd (GenM), has shifted from an unconditional voluntary offer to a mandatory takeover offer (MO) after Genting surpassed the 50% ownership threshold in the latter company. The change in the nature of the offer follows Genting’s acquisition of an additional 2.02% of Genting Malaysia’s shares through open market transactions. As of November 13, 2025, Genting and its concert parties (PACs) collectively hold more than 57% of the outstanding shares of Genting Malaysia.

This development, according to Malaysian takeover regulations, necessitates a mandatory offer once a company’s stake in a subsidiary exceeds 50%. Despite the offer becoming mandatory, the price of MYR2.35 per share remains unchanged, as Genting has not acquired any of the shares at a price higher than the offer price over the past six months. As Inside Asian Gaming reports, the deadline for accepting the offer has also been extended to 5 pm on December 1, 2025.

A Shift from Voluntary to Mandatory

Genting Bhd’s voluntary offer, which initially launched in early November 2025, has now been reclassified as mandatory following the group’s acquisition of an additional 114.47 million shares, representing 2.02% of the total issued shares in Genting Malaysia. This transaction pushes the parent company’s shareholding above the 50% threshold, which triggers the mandatory offer clause as stipulated in the Malaysian Code on Take-overs and Mergers.

Prior to this acquisition, Genting Bhd owned 49.44% of Genting Malaysia’s shares, and its ownership now stands at approximately 57%, marking a significant shift in control. Genting’s plan to acquire the remaining shares is aimed at taking Genting Malaysia private, with the broader goal of bolstering its position in the lucrative Resorts World New York City casino business.

Advised to Reject Offer

Despite Genting’s increased stake, an independent advisor to Genting Malaysia, Kenanga Investment Bank, has advised shareholders to reject the MYR2.35 per share offer, arguing that it is “not fair” and “not reasonable.” According to Kenanga Investment Bank’s analysis, the offer price represents a significant discount of between 32.47% and 37.67% when compared to the estimated intrinsic value of Genting Malaysia’s shares, which ranges between MYR3.48 and MYR3.77 per share. This valuation was derived through a sum-of-parts approach, which takes into account Genting Malaysia’s existing gaming assets and future earnings, particularly from its bid for a full commercial casino license in New York.

Analyst Tushar Mohata of Nomura has also expressed concerns about the feasibility of Genting reaching the 75% ownership required to delist Genting Malaysia, unless it raises the offer price. Mohata’s target price for Genting Malaysia’s shares is MYR2.70, above the current offer price, reflecting the belief that the present bid undervalues the company, particularly in light of the upcoming casino license award in New York, which is expected to significantly boost Genting Malaysia’s financial prospects.

Resorts World New York City and Expansion Plans

Genting Bhd’s strategic interest in Genting Malaysia is closely tied to the latter’s holdings in Resorts World New York City and Resorts World Catskills. The acquisition would allow Genting to increase its stake in these properties, which could be even more valuable should they be granted a full commercial casino license, as anticipated. This move aligns with Genting’s larger goal of expanding its international footprint and securing greater control over its gaming assets in key markets.

In addition to these US-based properties, Genting Malaysia operates the flagship Resorts World Genting in Malaysia and has a presence in other global markets, including the UK, Egypt, and the Bahamas. The potential privatization is seen as a way for Genting Bhd to streamline its operations and better position itself for future growth, particularly with Genting Malaysia’s ambitious expansion plans in New York.

As Genting Bhd works to increase its control over Genting Malaysia, the offer’s future remains uncertain. While Genting has succeeded in boosting its stake to 57%, and while the takeover offer has become mandatory, shareholders of Genting Malaysia have yet to fully accept the terms of the bid. The independent advisor’s recommendation, coupled with concerns about the fairness of the offer price, suggests that Genting may need to revise its bid to secure the remaining shares needed to complete the takeover.

Despite the challenges, Genting Bhd is confident that its offer will ultimately succeed, particularly as the company continues to navigate the regulatory landscape and expand its global operations. As Genting Malaysia prepares to potentially secure a new casino license in New York, the future of the company’s operations and its listing status remain crucial points of interest for investors.