Independent adviser tells Genting Malaysia shareholders to reject Genting’s RM2.35 a share offer

Thursday 17 Sep 2026

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KUALA LUMPUR (Nov 13): The independent adviser for Genting Malaysia Bhd (KL:GENM) has recommended shareholders reject Genting Bhd’s (KL:GENTING) RM2.35 a share offer to privatise the company.

The recommendation is based on Kenanga Investment Bank Bhd’s (Kenanga IB) view that the RM2.35 per share voluntary takeover offer is “not fair”, as it is below Genting Malaysia’s sum-of-parts derived valuation, and “not reasonable”, as investors may have the opportunity to realise their investment via the open market, according to a circular filed with Bursa Malaysia on Thursday.

The RM2.35 apiece offer represents a discount of between 32.47% and 37.67% to Genting Malaysia shares' estimated value of RM3.48 and RM3.77, and a 3.69% and 19.52% discount to the shares’ one-year and two-year high market prices, Kenanga IB noted.

Meanwhile, the independent adviser said Genting Malaysia shares are relatively liquid, with a two-year average monthly trading volume of 219.21 million shares (representing 8.08% of free-float).

At 8.08% of free-float, Genting Malaysia’s two-year average monthly trading liquidity is above the FBM KLCI’s average of 7.1%.

Kenanga IB said the offer isn’t reasonable since investors could sell shares on the open market if Genting can’t acquire 90% to delist GENM, and due to Genting’s US prospects with a New York license bid submitted and Empire Resorts restructuring.

As of Nov 6, the offerors owned 52.13% of Genting Malaysia and needed another 22.87% to breach the public spread requirement and 37.87% to delist the company.

The offer’s first closing date falls on Nov 24 but can still be extended. The offer notice was issued on Oct 13, when Genting held a 49.36% stake in Genting Malaysia.

Genting Malaysia’s non-interested directors, save for non-executive chairman Tan Sri Mohd Zahidi Zainuddin, who is also an indirect major shareholder of Kenanga IB, concurred with Kenanga IB’s opinion that the offer is “not fair” and “not reasonable”.

At noon break, shares in Genting were one sen or 0.28% lower at RM3.51, valuing the group at RM13.61 billion.

Genting Malaysia’s shares were one sen or 0.43% higher at RM2.36, giving the group a market capitalisation of RM14.01 billion.

Edited ByPresenna Nambiar

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