Wednesday, August 18, 2010

#Flash* Shareholders approve Genting Spore's UK divestment

KUALA LUMPUR: Shareholders of Genting Singapore Plc have approved the divestment of its underperforming UK casino operations to sister company Genting Malaysia Bhd (GenM) for ''340 million (RM1.67 billion) in an EGM on Wednesday, Aug 18, according to an announcement to the Singapore Stock Exchange.

GenM will have its EGM on Aug 24 to seek shareholders approval for the proposed acquisition.

The market had reacted negatively to GenM upon the announcement of the proposed acquisition last month.

At 3.45pm, GenM was at RM2.98, down one sen, while Genting Singapore was at S$1.54 (RM3.60), up two Singapore cents. GENTING BHD [], meanwhile, fell 12 sen to RM8.81.

Analysts are positive on the deal for Genting Singapore it would be able to focus more on Singapore with less pressure on balance sheet and room to explore other integrated resorts. Genting Singapore posted surprisingly strong results for 2QFY2010.

For the three months ended June 30, 2010, Genting Singapore posted a net profit of S$396.5 million compared to a net loss of S$50.7 million a year earlier. Revenue soared to S$979.3 million from S$120.1 million previously.


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