Genting Berhad has little incentive to divest its Singapore operations, despite speculation about a potential sale. According to analysts at Japanese investment bank Nomura, selling Genting Singapore — the operator of Resorts World Sentosa (RWS) — would offer limited long-term value beyond a short-term cash boost.
In a recent note, Nomura emphasized that RWS is the crown jewel of Genting’s global portfolio, generating the highest EBITDA among all its properties, even outperforming Malaysia’s Resorts World Genting during and before the COVID-19 pandemic.
The commentary follows recent reports that the Lim family — which controls Genting Berhad and holds a 53% stake in Genting Singapore — engaged in takeover discussions with MGM Resorts International. Those talks reportedly failed to materialize into a deal.
Strong Case for Holding
Nomura argues that maintaining full control of Genting Singapore is strategically wiser than selling a stake, whether in full or in part.
“Singapore provides valuable geographic diversification and regulatory stability,” the analysts noted. “For example, Singapore’s gradual and transparent approach to raising gaming taxes contrasts with Malaysia’s abrupt 10 percentage point hike.”
While some research firms believe Genting Berhad could consider a minority stake sale to reduce debt or pursue opportunities in Macau, Nomura believes the benefits of retaining Genting Singapore far outweigh potential gains from divestment.
No Active Sale Talks, Says Genting
On Monday, Genting Singapore filed a statement with the Singapore Exchange denying any ongoing discussions with potential buyers. It did confirm that its executive chairman, Tan Sri Lim Kok Thay, received an unsolicited acquisition proposal from an unidentified party. The company did not mention MGM.
The filing suggests that Genting is leaning toward holding onto Resorts World Sentosa — a move supported by the unit’s robust financials.
“Genting Singapore has the strongest balance sheet in the group, with net cash of SG$3.1 billion as of the end of 2021,” Nomura added. “Its dividends also help Genting Berhad meet some of its debt obligations.”
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