In New York and shareholders for casino operator Empire Resorts Incorporated have reportedly approved a $128.6 million transaction that is to see the firm merged into giant Asian counterpart Genting Malaysia Berhad.
According to a Wednesday report from the Poughkeepsie Journal newspaper, this deal was first announced in August and is to involve Genting Malaysia Berhad’s Genting (USA) Limited subsidiary acquiring a 38.3% stake in the American operator to go along with the majority stake it already held via its Kien Huat Realty investments arm.
The Poughkeepsie Journal reported that Empire Resorts Incorporated is responsible for the Resorts World Catskills property and was facing the real prospect of bankruptcy owing to the continued underperformance of the Sullivan County venue. Opened in February of last year near the small upstate New York village of Monticello, this $1 billion facility purportedly recorded a $73.5 million operating loss for the six months to the end of June and was confronting the possibility that it may be forced to close.
However, Edward Farrell, President of Genting (USA) Limited, reportedly declared that the purchase will allow his firm to better cross-market Resorts World Catskills with its Resorts World Casino New York City racino so as to reduce costs and improve its overall financial performance.
Farrell reportedly told the Poughkeepsie Journal…
“We can bring synergies to both projects and by just operating at a higher scale we’re going to be able to put the cost structure in a way that Resorts World Catskills can turn to black and we can make money going forward.”
The arrangement will moreover see New York-listed Empire Resorts Incorporated cease to be a publicly-traded concern while the firm’s President and Chief Executive Officer, Ryan Eller, described the transaction as a ‘first step’ that is to allow his organization to fulfill ‘the promise and potential of New York’s most prized integrated casino resort destination.’
Farrell reportedly told the newspaper…
“By leveraging Genting Malaysia Berhad’s extensive market knowledge, coupled with unrivaled play, stay and dine facilities, Resorts World Catskills is well positioned to increase performance and generate significant revenues for the region and the state of New York.”