Hold onto your hats, folks! Genting Bhd's bold move to take over Genting Malaysia Bhd has officially gone unconditional! This means the takeover is happening, and it's a significant moment in the financial world. But what does this mean for investors and the future of Genting Malaysia? Let's dive in.
On Monday, November 3rd, Genting Bhd (KL:GENTING) announced that its takeover bid for Genting Malaysia Bhd (KL:GENM) had become unconditional. This exciting development came after Genting surpassed the 50% ownership threshold, a crucial milestone in any takeover attempt.
According to a statement from AmInvestment Bank, Genting's principal advisor, the group now holds a staggering 2.84 billion GENM shares. This represents 50.105% of Genting Malaysia's total issued shares, excluding treasury shares. This significant increase was achieved through strategic acquisitions in the open market.
Before the offer document was posted, Genting already held a substantial 49.999% of GENM shares. To cross the critical threshold, they acquired an additional six million shares. The offer, initially announced on October 13th, is priced at RM2.35 per share. This price reflects a nearly 10% premium compared to GENM’s last traded price of RM2.14 on October 10th, before the stock was suspended for the announcement. This premium likely sweetened the deal for existing shareholders.
Here's where it gets interesting: Genting has made it clear that they don't plan to keep GENM listed on Bursa Malaysia. If the privatization is successful, it would mark the end of an era for a company that has been a fixture on the Malaysian stock exchange for nearly four decades.
The offer will remain open until November 24th, unless extended or revised. AmInvestment Bank also stated that the independent advice circular is expected to be released by November 13th. For those who accept the offer, settlement will be made within 10 days via direct bank transfer or cheque, depending on the shareholder's registration status.
On Monday, shares in Genting rose by 0.6% to close at RM3.40, valuing the group at RM13.18 billion. Genting Malaysia also saw a slight increase, edging up by 0.4% to RM2.34, bringing its market capitalization to RM13.9 billion.
But here's a question for you: Do you think this privatization is a positive move for Genting Malaysia, or could it have unforeseen consequences? Share your thoughts in the comments below!**
