Genting Group Stocks Surge Amid RM6.74 Bln Privatisation Plan

KUALA LUMPUR, Oct 14 (Bernama) -- Shares of Genting group of companies emerged among the top gainers in early trade today after Genting Bhd (GENT) announced a proposed RM6.74 billion privatisation of Genting Malaysia Bhd (GENM).

At 10.08 am, GENM rose 19 sen to RM2.33, with 121.45 million shares changing hands, while GENT gained 11 sen to RM2.97 with 18.63 million shares traded.

In a note today, Public Investment Bank Bhd (PIVB) said the conditional voluntary takeover offer extends to all the remaining 2.87 billion ordinary shares in GENM not already owned by GENT, representing a 50.64 per cent equity interest, at a cash offer of RM2.35 per GENM share.

“We maintain ‘neutral’ call on GENT but upgrade GENM to ‘buy’, given the upside potential from the privatisation offer and the possibility of it securing the downstate New York casino licence,” PIVB said.

Meanwhile, Hong Leong Investment Bank Bhd advised existing shareholders of GENM to accept the offer, as the proposed price represents a 14.1 per cent premium over its previous target price of RM2.06.

-- BERNAMA