Genting Malaysia tumbles 14.7% in early trade on loss-making deal

07 Aug 2019 / 14:02 H.

PETALING JAYA: Shares of Genting Malaysia Bhd slumped as much as 14.7% to a low of RM3.08 this morning on concerns over the acquisition of loss-making Empire Resorts Inc for RM538.8 million.

At the midday break, the stock slipped 41 sen or 11.4% to RM3.20 on 209 million shares done.

Hong Leong Research said it is negative on the news in the short term as the acquisition price implies a premium to the book value (1.5 times 2018 price-to-book value) despite Empire still recording losses.

It also downgraded Genting Malaysia to “hold” with a lower target price of RM3.79 from M4.21 previously.

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