News coming soon!
Independent adviser gives thumbs up to Genting HK stake disposal.
KUALA LUMPUR: Independent adviser RHB Investment Bank Bhd has described the proposed disposal by Genting Malaysia Bhd’s indirect unit Resorts World Ltd of its 17.81% stake in cruise ship operator Genting Hong Kong Ltd as “fair and reasonable”.
The proposed disposal will be for a minimum price of US$472.2mil (RM1.77bil) in cash, or 33 US cents per share. The original cost of investment in the disposal shares was US$604.1mil (RM2.25bil), or an average of 42 US cents per share. The proposed disposal will be to a party yet to be determined within a year from the date of approval of shareholders at an EGM to be held on July 2.
“We are of the opinion that the minimum price and the terms of the proposed disposal mandate are fair and reasonable insofar as you are concerned.,” RHB Investment Bank said in its independent advice letter.
“In the absence of unforeseen circumstances, the proposed disposal mandate is deemed to be in the best interests of your Group and is not detrimental to you. As such, we recommend that you vote in favour of the ordinary resolution pertaining to the proposed disposal mandate to be tabled at the EGM to be convened.”
According to Genting Malaysia’s circular to shareholders, the minimum price of 33 US cents was decided after considering, among others, the equity valuation of Genting Hong Kong of between 33 US cents and 45 US cents as ascribed by Morgan Stanley, which was appointed as the international financial adviser to provide its valuation to the board, as well as the 5-day, 1-month, 3-month and 6-month volume weighted average market price of Genting Hong Kong shares up to April 27, 2015.
“It should be noted that there is no assurance that Resorts World is able to proceed with the disposal after obtaining the proposed disposal mandate,” Genting Malaysia also said in the circular posted on Bursa Malaysia on Wednesday.
RHB Investment Bank noted that save for the net dividends of RM6.2mil and RM47mil received by the Genting Malaysia group in the 1999 and 2014 financial years respectively, the group has not received any dividends since it invested in Genting Hong Kong in 1998.
The proposed sale of the Genting Hong Kong stake is believed to be closely watched by the New South Wales Independent Liquor and Gaming Authority, as Genting has sought to boost its stake in Australian gaming group Echo Entertainment above the current legislated 10%.
The Daily Telegraph reported that the authority was delaying its decision, expected to be made last month, in order to first see who would buy the 17.81% stake in Genting Hong Kong.
http://www.thestar.com.my/Business/...bs-up-to-Genting-HK-stake-disposal/?style=biz
