Genting Malaysia privatisation a ‘good deal’ for investors: analyst

The shares are above trade-profit order

Investors are advised to accept Genting Bhd’s (GENT) conditional voluntary takeover offer for its subsidiary Genting Malaysia (GENM) as it is a good exit deal, reports CGS International.

GENT announced plans to take majority ownership of GENM for RM6.7b ($2.1b) on 14 October 2025. The acquisition would lead to the gaming and hospitality arm’s temporary delisting from Bursa Malaysia.

The $0.72 offer price represents a 9.81% premium over the last traded price of GENM at the last trading date (LTD), CGS International said in a report on 13 October 2025.

“We advise investors to accept the offer as it is a good opportunity to exit given its weaker earnings growth and cut in dividends,” the group said, adding that “it is above our [trade-profit order] and offers a good opportunity to exit.”

It also shows a 22.90% premium over the volume-weighted average market price (VWAMP) of up to and including the LTD over the last 12 months, it added.

The adviser reckoned that GENM would incur higher “opex and capex at Resorts World New York City (RWNYC) as it bids for a New York downstate casino, leading to lower earnings growth and dividend cuts.”

However, risks could make the privatisation unsuccessful.

CGSI International said that GENT shareholders are likely still sitting on paper losses, as the offer price is lower than its average range of RM2.50-RM3.00 ($0.77-$0.92) from 2022 to 2024 and the premium from the offer is less than 10% from its current share price.

Investors might also await the New York casino bid results that could provide significant long-term value, the firm said.

“We think that the management of GENT believes that the value of GENM is higher than what the market is willing to ascribe, potentially due to its related-party transactions (RPT) of the past, and would rather privatise GENM for now.

We reckon there is a possibility that GENT could relist GENM in the future after possibly restructuring it and when there is more positivity towards its earnings outlook.”

GENM has 18 analysts covering the stock with three Buy ratings, 12 Hold ratings, and three Sell ratings, with an average TP of RM2.06 ($0.63), CGS said, citing Bloomberg data.

RM1 = $0.31 as of 14 October 2025 (data from Refintiv via Google)