Genting Malaysia buys stake in Nasdaq listed Empire Resorts
KUALA LUMPUR: Genting Malaysia Bhd (GENM) is consolidating its gaming business in the US.
The company, in a filing with Bursa Malaysia today, said wholly owned Genting (USA) Ltd has proposed to acquire 13.2 million shares in Empire Resorts Inc from its single largest shareholder Kien Huat Realty III (KH) for US$128.6mil (RM538.8mil).
It is further proposing a joint venture between GENM and KH to gain full control of Empire Resorts.
The 13.2 million shares currently represents approximately 46% of the shares of common stock held by KH and which also represents approximately 35% of the outstanding voting power of Empire on a fully diluted basis after conversion of all preferred stock currently outstanding into common stock.
KH is currently the largest shareholder of Empire, owning approximately 28.91 million shares or 84% of common stock.
Empire is a gaming and entertainment company publicly traded on the Nasdaq Stock Market.
The company owns and operates Resorts World Catskills (RWC), a casino resort situated on a 1,700-acre site in Sullivan County, New York in America. Empire also owns and operates Monticello Casino and Raceway.
Empire has also entered into a sportsbook and digital gaming collaboration agreement with an affiliate of Bet365 Group Limited, a British online gaming company based in the United Kingdom.
“Following the collaboration agreement, Bet365 will participate with Empire in the offering of retail sports betting and online sportsbook, online casino and online poker in New York State, if and when permitted by applicable law,” said GENM.
On the rationale for this move, GENM said that this would better position the Resorts World brand in the northeastern US gaming market through more effective cross marketing with Resorts World Casino New York City.
Additionally it would also attract additional customers from other states, such as New Jersey and Pennsylvania by introducing new marketing efforts in these geographies and increasing market penetration of high-end players.
It would also be able to participate in Empire’s future growth opportunities in the Orange County Opportunity, which is located close to Woodbury Commons Premium Outlet Mall, a renowned shopping outlet in the state of New York which is popular with international tourists.
Source: TheStar