Genting Buys UK Casino Businesses for RM1.7billion
PETALING JAYA: Genting Malaysia Bhd. will acquire its Singapore affiliate’s casino businesses in Britain for £340mil (about RM1.67bil).
It said in a statement yesterday the acquisition of Genting Singapore PLC’s operations in Britain (Genting UK) complemented its long-term international expansion strategy.
Genting Malaysia plans to enter Europe and the United States where it had separately announced that it had submitted a bid for a video-lottery-licence.
President and Chief Operating Officer, Datuk Lee Chong Yan said the acquisition would give the company access to established casino brands and an extensive network of casinos already operating across Britain.
“With our proven track record and decades of experience, we have the expertise to unlock the potential of Genting UK and grow the business in Britain,” he said in the statement.
The acquisition is subject to approvals from Bank Negara and the British Gambling Commission, as well as from the company’s shareholders at an EGM to be convened.
Genting Malaysia told Bursa Malaysia the company was optimistic about the outlook of Genting UK businesses as the operating environment gradually strengthened and the economy improved.
However, it said, the Genting UK businesses were subject to risks inherent to the casino gaming industry, which were broadly similar to those currently faced by the company.
It said there was no assurance that strategies implemented by the company for Genting UK businesses would produce the desired outcomes.
This article was published in the StarBiz on 2nd July 2010.