Genting Malaysia to offload Miami unit, instead of land, for US$1.23b

KUALA LUMPUR (May 11): Genting Malaysia Bhd (GenM) announced that it will dispose of its wholly-owned subsidiary Resorts World Miami LLC (RW Miami) for US$1.225 billion (RM5.433 billion), instead of four parcels of land owned by the subsidiary in Miami.

The casino operator revised its divestment plan because purchaser Smart Miami City LLC on May 10 opted to exercise its right to convert the transaction to a 100% purchase of the ownership interests in RW Miami, instead of the land within 10 business days after the effective date.

In the latest bourse filing, GenM said that purchaser Smart Miami City LLC may elect to convert the transaction to a purchase of 100% of the ownership interests in RW Miami instead of the Miami Herald Land within ten business days after the conversation date (May 10).

“Accordingly, the purchaser (Smart Miami) and RW Miami shall work in good faith to negotiate an amendment to the sale and purchase agreement (SPA) to effect the change in the transaction structure of the proposed disposal to a disposal of 100% of the ownership interests in RW Miami,” it said.

GenM said that further details shall be announced once the agreement regarding the amendments to the SPA has been entered into.

On April 27, GenM said it wanted to sell four tracts of land, measuring 15.47 acres and held by RW Miami, for US$1.225 billion (RM5.433 billion) to Smart Miami. The deal would have enabled GenM to realise an estimated gain of US$967 million.

GenM said in the earlier filing that the cash proceeds generated from the proposed disposal are intended to be utilised for general corporate and investment purposes, including funding future investments as and when they arise.

GenM’s share price gained three sen at RM2.71 on Thursday, giving it a market capitalisation of RM16.09 billion.