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Genting Malaysia ups stake in Empire Resorts for US$128.6m

05 Nov 2019 / 15:39 H.

PETALING JAYA: Genting Malaysia Bhd’s (GenM) wholly owned Genting (USA) Limited (GenUSA) has purchased 13.2 million shares of Empire’s Common Stock from Kien Huat Realty III Ltd (KH) for US$128.6 million (RM533.8 million) or US$9.74 per share.

Following the proposed acquisition, GenUSA now holds a 38.3% stake in Empire on an undiluted basis and 33.3% on a fully diluted basis assuming full conversion of all preferred stock currently outstanding into Empire’s Common Stock.

“The obligation of GenUSA and KH to consummate the proposed acquisition is independent of, and not conditional upon, the proposed merger,“ GenM said in a stock exchange filing.

To recap, GenM bought an effective 35% stake in cash-strapped Empire Resorts Inc from Tan Sri Lim Kok Thay, via 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.

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