KUALA LUMPUR (Dec 1): Genting Malaysia Bhd (KL:GENM) will remain listed, after Genting Bhd (KL:GENTING) secured less than a 75% stake in the company following its privatisation bid.
In a filing with the bourse, Genting said that as at 5pm on Dec 1, it had only managed to secure a 73.133% interest in the GENM at the close of its offer. Another 0.202% in acceptances were yet to be vetted.
Genting had said it would not maintain GENM's listing status should the acceptance level for its RM2.35-a-share offer cause the company to fall below the 25% public shareholding spread.
The deal’s independent adviser recommended that shareholders reject Genting’s privatisation offer, citing a steep discount and the stock’s easy tradability.
The RM2.35 per share offer was a nearly 10% premium to GENM’s last traded price of RM2.14 on Oct 10, before the stock was suspended for the offer announcement.
Genting extended its voluntary takeover offer for Genting Malaysia to Dec 1 from Nov 24, after it only managed to up its stake to 57.008% by Nov 13.
It started with 49.999% when the offer was announced on Oct 13, and acquired another six million shares to surpass the 50% ownership threshold, turning it unconditional on Nov 3.
Genting's offer for GENM closes as GENM's ambitious casino bid in New York is due to be announced on Dec 1 in the US. The New York Gaming Facility Location Board is expected to announce its selections for one of three coveted downstate commercial casino licences, ending a multi-year contest that originally drew eight contenders.
GENM closed unchanged at RM2.35 on Monday, valuing the company at RM13.3 billion. The stock is up 3.98% this year.
Genting’s share price closed 2.75% higher at RM3.36, valuing the company at RM12.9 billion. It is down 12.95% this year.