Sunday 21 Jul 2024
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KUALA LUMPUR (Oct 12): Genting Malaysia Bhd (GenM) is injecting another US$150 million (RM625 million) into its US-based unit Empire Resorts Inc mainly for the repayment of short-term debts.

In a bourse filing, GenM said its indirect wholly-owned unit Genting ER II LLC on Monday (Oct 11) entered into an agreement to subscribe for up to US$150 million of additional Series L Preferred Stock of Empire.

The casino, amusement park and resort operator said it is contemplating a long-term financing plan, with the proceeds to be used to partly repay existing indebtedness of US$365 million and pay for financing-related expenses.

"The proposed equity injection will also allow GenM to reinforce its position and grow its market presence in the New York State gaming market by leveraging synergies between RWNYC (Resorts World New York City) and RWC (Resorts World Catskills) to achieve cost savings and grow business volumes and revenues as well as capitalise on the prospects and future growth of Empire.

"There will also be joint marketing initiatives with Genting Bhd's Resorts World Las Vegas integrated resort development that recently opened in June 2021," it said.

The proposed equity injection will be funded through proceeds from GenM's US$1 billion bond issuance completed on April 20.

"With this proposed equity injection, GenM would have invested a total of up to US$524.4 million in Empire," the group said.

Over the last three years, GenM has injected US$210 million into Empire Resorts, with US$40 million in March 2019, US$150 million in September 2020 and US$20 million in March 2021.

GenM holds 49% of Empire Resorts via Genting ER II, excluding the conversion of Empire preferred stock into Common stock. The remaining stake is held by Kien Huat Realty III Ltd, an investment vehicle controlled by Tan Sri Lim Kok Thay (deputy chairman and chief executive of GenM).

Shares in GenM ended four sen or 1.27% higher at RM3.19, giving a market capitalisation of RM18.94 billion.

Edited ByS Kanagaraju
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