Asian casino operator, Genting Malaysia Berhad, has reportedly announced the start of the $128.6 million deal that is due to see it fully acquire smaller American counterpart Empire Resorts Incorporated.
According to a report from Inside Asian Gaming, the Malaysian firm used an official filing to detail that the purchase is set to involve its Genting (USA) Limited subordinate buying some 13.2 million shares in Empire Resorts Incorporated to give it an additional 38.3% stake in the diminutive American operator.
Genting Malaysia Berhad reportedly revealed that its Kien Huat Realty investments arm already held a controlling stake in Empire Resorts Incorporated, which is responsible for the loss-making Resorts World Catskills casino resort located near the small upstate New York village of Monticello. It purportedly detailed that this subsidiary will subsequently partner with Genting (USA) Limited in order to establish a new joint venture to run the Sullivan County property.
Reportedly read the filing from Genting Malaysia…
“The obligation of Genting (USA) Limited and Kien Huat Realty to consummate the proposed acquisition is independent of and not conditional upon the proposed merger.”
Resorts World Catskills opened its doors in February of 2018 as the last of New York’s first tranche of four Las Vegas-style commercial casinos following the earlier premiere of the similarly-grand Del Lago Resort and Casino, Tioga Downs Casino Resort and Rivers Casino Resort Schenectady properties. It had been hoped that the debut of this $1 billion venue would help to boost upstate tourism but it has since largely failed to live up to expectations and most recently recorded a second-quarter loss of approximately $35.86 million.
Inside Asian Gaming reported that the acquisition of Empire Resorts Incorporated by Genting Malaysia Berhad, which was first announced in August, comes despite the filing of a lawsuit by a minority shareholder in the former firm that is seeking to scupper the planned deal. This action was lodged with the Sullivan County branch of the New York Supreme Court by marginal stakeholder David Mullen last month amid claims that his investment may have been undervalued.
However, Genting Malaysia has decided to push ahead regardless and reportedly claimed that the coming union will allow it 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.