Genting Malaysia undertakes RM2.2 billion restructuring of US subsidiary Empire Resorts
In a filing with Bursa Malaysia today, Genting Malaysia said Empire Resorts will dispose of its non-gaming assets – including Resorts World Catskills Hotel, Alder Hotel, Monster Golf Course, RWC Epicenter and various restaurants – to the Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) for US$525 million (RM2.2 billion).
Proceeds from the sale will be used to acquire 1,554.6 acres of land from EPR Properties for US$201.3 million (RM848.1 million), giving Empire Resorts full ownership of the land under both its gaming and non-gaming operations, along with additional development-ready land.
The acquisition eliminates prior lease obligations, enabling Empire Resorts to better control its strategic assets.
The disposal proceeds will also be used to fully redeem Empire Resorts' outstanding US$300 million senior unsecured notes due November 2026. This early redemption will leave Empire Resorts debt-free and significantly improve its financial position by eliminating high-interest payments.
Following the asset sale, Empire Resortswill lease back the non-gaming properties from SCRFLDC under a long-term land lease running through 2066, ensuring continued operational control.
Additionally, Empire Resorts will manage these assets under a 20-year agreement with SCRFLDC, with automatic renewals of up to 10 more years.
The restructuring is expected to improve Empire Resorts' cost structure by removing lease payments to EPR and reducing interest expenses, while generating a surplus of about US$10 million (RM42.1 million) to support working capital.
Genting Malaysia said this strategic realignment enhances Empire Resorts' financial flexibility and asset base, reinforcing its competitiveness in the New York State gaming sector.
The group added that Empire Resorts and SCRFLDC are currently finalising the detailed terms of the agreements.
This marks a key milestone in Genting Malaysia's ongoing efforts to streamline its international operations and maximise long-term shareholder value.
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Free Malaysia Today
2 days ago
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Genting Malaysia's loss-making US unit sells assets for RM2.2bil
Genting Malaysia's US$41 million (RM173 million) buyout of Empire Resorts raised eyebrows among some investors and analysts. (File pic) PETALING JAYA : Genting Malaysia Bhd's (GENM) loss-making US subsidiary Empire Resorts Inc (ERI) is disposing its non-casino properties in New York state for US$525 million (RM2.2 billion) to eliminate its debt, and purchase land. GENM said the proposal will 'deliver long-term strategic and financial benefits' to ERI as the sale proceeds enables it to fully redeem its US$300 million (RM1.3 billion) bond due in November 2026. This will make ERI – which has been recording losses for over two decades – debt-free. 'The proposal will reinforce GENM's long-term commitment to improve its competitive position within the New York state gaming market and the broader northeastern US region,' it said in a filing with Bursa Malaysia today. GENM said the restructuring will lower financing costs, boost ERI's assets and add RM42.1 million in extra cash. The deal will see ERI sell the 332-room Resorts World Catskills and the 99-room Alder Hotel, the 18-hole Monster golf course, the 2,500-seat RWC Epicenter, and restaurants to a local development body, Sullivan County Resort Facilities Local Development Corp (SCRFLDC). Part of the sale proceeds will be used to buy 1,554.6 acres of land from EPR Properties for RM848 million. EPR is a US-listed real estate investment trust (REIT) that invests in entertainment properties. The land includes 420 acres upon which Resorts World Catskills' assets sit, and 1,134.6 acres of vacant land with potential for future development. ERI will also enter into a land lease with SCRFLDC through Feb 15, 2066 for all land under the non-gaming assets, and manage the assets under a 20-year agreement, with two automatic five-year renewals. ERI and SCRFLDC are currently finalising terms for the sale, lease and management agreements. Controversial US$41 million buyout This exercise comes on the heels of GENM's controversial US$41 million (RM173 million) buyout of the remaining 51% of ERI it did not own from Kien Huat Realty III Ltd. This is the vehicle of the Lim family led by Lim Kok Thay, the son of Genting founder Lim Goh Tong. Under the deal announced some three months ago, Kien Huat Realty III assigned a US$39.7 million (RM167 million) debt to GENM that ERI owed to it. Some analysts labelled the acquisition 'expensive and potentially profit-dilutive', and concerns were raised that it was an unfavourable related party transaction (RPT). Bursa also grilled GENM over the buyout, slapping the gaming and resort operator with 20 questions on the deal. According to its 2024 annual report, Kok Thay, 73, and his son, Keong Hui, 40, have a deemed interest of 49.35% in GENM as of March 17, 2025. Kok Thay is GENM's deputy chairman and chief executive while Keong Hui is the deputy chief executive and executive director. GENM shares rose 3 sen or 1.5% to RM2.02 today, valuing the group at RM12 billion. Year to date, the stock is down 10.2%.
Malaysian Reserve
2 days ago
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Genting's Empire Resorts unlocks RM2.2b, secures land ownership, and wipes out debt
GENTING Malaysia Bhd's (GENM) US subsidiary, Empire Resorts Inc, is making a major strategic move to strengthen its financial position and expand its landholdings in New York. Empire is set to sell its non-gaming assets including the 332-room Resorts World Catskills hotel, 99-room Alder Hotel, 18-hole Monster Golf Course, the 2,500-seat RWC Epicenter, and multiple restaurants to Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) for US$525 million (around RM2.2 billion). The cash from this sale will fund a series of strategic initiatives that reshape the company's operations. Proceeds from the sale will allow Empire to buy 1,554.6 acres of land from EPR Properties for US$201.3 million (RM848.1 million), securing ownership of the resort's existing gaming and non-gaming areas and additional land for future development. Empire will also use the funds to redeem its US$300 million (RM1.3 billion) 7.75% senior unsecured notes due in November 2026, leaving the company debt-free. Empire will continue to manage the sold non-gaming assets under a 20-year agreement with SCRFLDC, while the facilities will be operated as public benefit assets aimed at promoting employment and local development in Sullivan County. The proposal is expected to deliver several long-term benefits. Redeeming the bond strengthens Empire's balance sheet and frees it from interest obligations, while owning the land outright gives the company long-term control and flexibility. Eliminating lease payments and generating surplus cash of around US$10 million (RM42.1 million) improves working capital and cost efficiency. GENM said the initiative reinforces its commitment to expanding Empire's competitiveness in the New York gaming market and the broader northeastern US region. Empire and SCRFLDC are in the process of finalising agreements, with further details to be announced in due course. –TMR
The Sun
2 days ago
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Genting Malaysia undertakes RM2.2 billion restructuring of US subsidiary Empire Resorts
KUALA LUMPUR: Genting Malaysia Bhd is undertaking a RM2.2 billion restructuring of its wholly owned US subsidiary, Empire Resorts Inc to strengthen its capital structure and sharpen its long-term strategic focus in the northeastern US gaming market. In a filing with Bursa Malaysia today, Genting Malaysia said Empire Resorts will dispose of its non-gaming assets – including Resorts World Catskills Hotel, Alder Hotel, Monster Golf Course, RWC Epicenter and various restaurants – to the Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) for US$525 million (RM2.2 billion). Proceeds from the sale will be used to acquire 1,554.6 acres of land from EPR Properties for US$201.3 million (RM848.1 million), giving Empire Resorts full ownership of the land under both its gaming and non-gaming operations, along with additional development-ready land. The acquisition eliminates prior lease obligations, enabling Empire Resorts to better control its strategic assets. The disposal proceeds will also be used to fully redeem Empire Resorts' outstanding US$300 million senior unsecured notes due November 2026. This early redemption will leave Empire Resorts debt-free and significantly improve its financial position by eliminating high-interest payments. Following the asset sale, Empire Resortswill lease back the non-gaming properties from SCRFLDC under a long-term land lease running through 2066, ensuring continued operational control. Additionally, Empire Resorts will manage these assets under a 20-year agreement with SCRFLDC, with automatic renewals of up to 10 more years. The restructuring is expected to improve Empire Resorts' cost structure by removing lease payments to EPR and reducing interest expenses, while generating a surplus of about US$10 million (RM42.1 million) to support working capital. Genting Malaysia said this strategic realignment enhances Empire Resorts' financial flexibility and asset base, reinforcing its competitiveness in the New York State gaming sector. The group added that Empire Resorts and SCRFLDC are currently finalising the detailed terms of the agreements. This marks a key milestone in Genting Malaysia's ongoing efforts to streamline its international operations and maximise long-term shareholder value.
