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Genting Malaysia invests another US$100m in Empire Resorts

Genting Malaysia invests another US$100m in Empire Resorts

Genting Malaysia Bhd said it is investing an additional 100 million dollars (RM438.5 millions) to purchase convertible preferred stock of Empire Resorts Inc, raising its stake in the gaming company based in New York up to US$624.4 million.

Genting Malaysia's investment total in Empire Resorts includes an indirect ownership of 49% common stock. 100 percent of the Series G as well as Series L preferred shares. Genting Malaysia's share price has dropped after the Malaysian resorts and casino operator announced its purchase of Empire Resorts back in August 2019.

As per Bloomberg data, even though the stock has mostly returned to pre-Covid-19 levels but it hasn't reached the RM3.14-RM3.20 range that was seen at the middle of August of 2019. The previous Tuesday (Dec 5, 2007), Genting Malaysia closed unaffected at RM2.64 The group has its market capitalisation at RM15.68 billion,stated by best online casino in malaysia.

The latest deal involves Genting Malaysia taking over a total of 1,510 Series F convertible preferred stock from Kien Huat Realty III Ltd which's investment cost was estimated at US$151 million according to the company's Bursa report for Malaysia. Kien Huat Realty III is entirely owned by Blue Wood Ltd, an Isle of Man company which is owned by Golden Hope Ltd as trustee of the Golden Hope Unit Trust (GHUT).

Genting Malaysia chief executive and 49.99 percent shareholders Tan Sri Lim Kok Thay Tan Sri Lim Kok Thay, as well as Lim Keong Hui, his daughter Lim Keong Hui, have indirect stakes within Kien Huat Realty III by because they are beneficiaries of the trust that owns all of the voting stake in GHUT. The expiration date is December 31, 2038. it's convertible into common stock at the end of 2030 until the expiration date.

In the event of a full conversion of Series F G and L preferred stock by 2030 Genting Malaysia said its actual stake of Empire Resorts will increase to 76.3 percent, up from 49% now. Genting Malaysia said the latest round of investments was designed to profit from Empire Resorts' improving performances since the US company's privatisation in the month of November 2019.

This is clear from its record of high levels of revenues from gaming gross that have surpassed pre-pandemic levels throughout the month until May 2021. stated Genting Malaysia.

Empire Resorts recorded positive earnings prior to interest, taxes depreciation, amortisation and interest (Ebitda) in the amount of US$30.6 million in the year that ended last year, which was the first time since the beginning of operations.

In the nine-month period that ending Sept. 30 2022, Empire Resorts posted an Ebitda of US$31.8 million. With increasing profits and a better outlook the planned Series F acquisition sets the foundation to allow Genting Malaysia to further capitalise on the growing prospects that are being offered by Empire Resorts and reinforce its position in the New York State gaming market, the group said.