PETALING JAYA: Genting Malaysia Bhd (GenM) announced that its proposed privatisation of Empire Resorts Inc will be moving ahead, after it gained approval from Empire shareholders at a special meeting held on Nov 13 for the merger exercise.
“As part of the proposed merger and in accordance with the merger agreement, qualified shareholders of Empire will be entitled to receive in cash from JVCo US$9.74 for each share of common stock in Empire held,” it said in a filing with Bursa Malaysia.
On Aug 5, GenM bought an effective 35% stake in cash-strapped Empire Resorts Inc from Tan Sri Lim Kok Thay, via Kien Huat Realty III Ltd (KH), in a related party transaction for RM538 million in cash.
Following the share acquisition, GenM and KH decided to jointly take on the privatisation of Empire Resorts for US$9.74 per share.
GenM was then hit with a lawsuit by Empire minority shareholder David Mullen claiming that the merger went against the interest of minority shareholders.
Mullen accused Empire Resorts and its board of not providing sufficient information in order to assess the privatisation offer. Furthermore, he claimed the deal was endorsed by board members who would financially benefit from it.
Mullen also claimed Empire Resorts was deemed undervalued based on the privatisation offer of US$9.74 per share.