Latest news with #GentingMalaysia
Free Malaysia Today
4 days ago
- Business
- Free Malaysia Today
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%.
The Sun
4 days ago
- Business
- The Sun
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.
New Straits Times
4 days ago
- Business
- New Straits Times
Genting Malaysia to sell RM2.2bil of non-gaming assets in New York
KUALA LUMPUR: Genting Malaysia Bhd's wholly-owned Empire Resorts Inc will sell its non-gaming assets in New York for US$525 million (RM2.2 billion) as part of a plan to strengthen its capital structure and financial position. Genting Malaysia said the non-gaming assets will be sold to Sullivan County Resort Facilities Local Development Corporation (SCRFLDC). They comprise the 332-room Resorts World Catskills (RWC) hotel, 99-room Alder Hotel, 18-hole Monster Golf Course, 2,500-seat RWC Epicenter and multiple restaurants. Proceeds from the disposal will be used to buy 629.2 hectares of land from EPR Properties for US$201.3 million (RM848.1 million), redeem Empire's US$300 million (RM1.3 billion) 7.75 per cent senior unsecured notes due November 2026, and fund working capital needs. As part of the proposal, Empire will enter into a land lease with SCRFLDC until February 15, 2066 for all land under the non-gaming assets, as well as a 20-year management agreement, with automatic renewals, to manage those assets. "The proceeds from the disposal will enable Empire to fully redeem the Empire Bond, resulting in Empire being debt-free. This allows Empire to continue its focus on improving operating performance and realising its full potential," it said. It added that the acquisition of the land parcels will give Empire long-term control over 170 hectares where RWC's gaming and non-gaming facilities are located, in addition to 459 hectares of vacant land with development potential. The proposed disposal is expected to generate about US$10 million (RM42.1 million) in surplus cash for the Empire's general working capital. Genting Malaysia said the move reinforces its commitment to improving its competitive position in New York's gaming market and the broader northeastern United States.
New Straits Times
30-06-2025
- Business
- New Straits Times
News@9: Today's top headlines - June 30, 2025 [WATCH]
Here are today's top stories. No Foul Play Police found no evidence of sabotage, negligence, or system faults in the April 1 gas pipeline explosion in Putra Heights. Not Guilty Two Sabah assemblymen and a businessman pleaded not guilty to corruption charges over alleged bribes involving mineral prospecting licences. Genting Malaysia submitted a US$5.5 billion-bid for one of New York's highly sought-after casino licences to transform Resorts World New York City into a flagship resort. Trademark Battle Ferrari's lawsuit against local firm Sunrise-Mark over a logo featuring a prancing horse was dismissed by the High Court, which ruled that it bore no significant similarity to Ferrari's iconic emblem.
New Straits Times
30-06-2025
- Business
- New Straits Times
Genting Malaysia tables formal bid for New York casino licence, eyes major expansion
KUALA LUMPUR: Genting Malaysia Bhd has formally submitted its bid for one of New York's highly sought-after casino licences, anchoring a massive US$5.5 billion (RM23.19 billion) plan to elevate its existing Resorts World New York City (RWNYC) into a flagship integrated resort in Queens. In an exchange filing, Genting Malaysia confirmed that the bid was officially lodged on June 27 in response to the New York State Gaming Commission's request for applications for up to three commercial casino licences in downstate New York. RWNYC, located next to JFK International Airport, has been operating for 15 years and is currently the only casino in the city offering video lottery terminals and electronic table games. RWNYC is uniquely positioned to transform itself into a world-class integrated resort destination with this proposed multi-billion-dollar investment, which will drive the next chapter of growth for the company, Genting Malaysia said. The company expects a final decision by December 1, with licences anticipated to be issued by Dec 31, 2025. In a separate statement, RWNYC revealed more details about the ambitious plan, which would see the property expand into a 5.6 million-square-foot entertainment and hospitality destination. The project aims to start contributing significant tax revenue to the state by July 2026. Once the gaming licence is secured, RWNYC plans to introduce live table games and full-scale slot operations within six months. The proposed expansion includes a 500,000 sq ft gaming floor featuring 6,000 slot machines and 800 table games — making it one of the largest casino floors in the region. Other planned additions include 2,000 hotel rooms to accommodate both leisure and business travellers, a 7,000-seat entertainment venue for world-class performances, over 30 new food and beverage outlets, expansive meeting and convention facilities, and more than 10 acres of public greenspace designed to benefit the local community. The development is expected to create a substantial economic boost for New York City and the surrounding area by expanding RWNYC's workforce from 1,000 to 5,000 permanent jobs. New employment opportunities will span gaming operations, hospitality, food and beverage services, event management, security, maintenance, and other support roles. RWNYC is fully owned and operated by Genting's wholly owned subsidiary, Genting New York LLC. Since opening its doors 15 years ago, RWNYC has grown into the busiest slot-machine casino in the US by gaming revenue, offering 5,500 electronic gaming machines, a variety of dining and entertainment options, event facilities, and a 400-room Hyatt Regency hotel that attracts both local visitors and tourists. The mega expansion underscores Genting Malaysia's long-term commitment to strengthening its footprint in the US gaming market, where it also operates Resorts World Catskills in upstate New York and Resorts World Las Vegas. The group sees the New York bid as a strategic opportunity to unlock RWNYC's full potential as a premier integrated resort — boosting tourism, job creation, and tax contributions for the state.
