OTHERS GENTING MALAYSIA BERHAD ("GENM") DISPOSAL OF AN INDIRECT WHOLLY-OWNED SUBSIDIARY

GENTING MALAYSIA BERHAD

Type Announcement
Subject OTHERS
Description
GENTING MALAYSIA BERHAD ("GENM")
DISPOSAL OF AN INDIRECT WHOLLY-OWNED SUBSIDIARY

Unless otherwise stated, the exchange rate of GBP1.00:RM5.3471, being Bank Negara Malaysia’s middle rate as at 5.00 p.m on 21 March 2019, is used throughout this announcement for purposes of translation of GBP into RM.

 

The Board of Directors of GENM wishes to announce that Genting UK Plc (“GUK”), an indirect wholly-owned subsidiary of GENM, had on 21 March 2019 entered into a Share Purchase Agreement with Sonco UK BidCo Limited (“Sonco”) to dispose of its entire equity interest in Coastbright Limited (“Coastbright”) for a total cash consideration of approximately GBP34.6 million (or the equivalent of approximately RM185.0 million) (“Disposal”).

 

Coastbright, an indirect wholly-owned subsidiary of GUK, is principally involved in operating the Maxims casino in Kensington, London, United Kingdom.

 

Sonco represents a consortium of investors led by Sonco Gaming Inc., a Canadian group engaged in the ownership, operation and development of gaming properties.

 

The Disposal will allow GUK to streamline its operations. GENM is also expected to realise a gain arising from the Disposal. For illustrative purposes, based on GENM’s audited consolidated financial statements for the financial year ended 31 December 2018 and assuming that the Disposal had taken place at the beginning of the year, the Disposal is expected to realise a gain of approximately GBP23.0 million (or the equivalent of approximately RM123.0 million).

 

The proceeds from the Disposal are intended to reduce GUK group’s borrowings and for other potential investment opportunities.

 

The Disposal is not expected to have a material effect on the consolidated earnings, net assets and gearing of GENM for the financial year ending 31 December 2019.

 

This announcement is made pursuant to Paragraph 9.19 (24) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad whereby Coastbright ceased to be an indirect wholly-owned subsidiary of GENM.  

 

This announcement is dated 22 March 2019.






Announcement Info

Company Name GENTING MALAYSIA BERHAD
Stock Name GENM
Date Announced 22 Mar 2019
Category General Announcement for PLC
Reference Number GA1-22032019-00069