With the recent updates on Genting Malaysia (GENM), from news on the targeted opening of its theme park to the latest status update on its relationship with Fox group and Disney, GENM shares have gained momentum over the last week, up 9.2% week-to-date as at yesterday’s close. Call warrant GENM-C58 was the most popular call warrant yesterday with 16.7mil units traded.

Legal Dispute Resolved

In November last year, GENM sued Twentieth Century Fox and Walt Disney (Disney) when they pulled out of the outdoor theme park in Resorts World Genting, citing reasons that Disney did not want to be associated with the gaming business. GENM sought more than RM1bil in damages.

Following that, GENM said in a filing on Bursa Malaysia yesterday (25 Jul) that it has reached a settlement with Fox Entertainment Group, Twentieth Century Fox Film, FoxNext, Twenty First Century Fox (collectively the “Fox group”) and Disney over the said theme park. Pending legal action in the US District Court for the California Central District, all parties have agreed to fully resolve their disputes and dismiss all claims, and have signed a memorandum of agreement granting GENM a license to use certain Fox intellectual properties.

Theme Park Opening Sooner Than Expected

This follows another positive news that surfaced earlier this week on Wednesday, on which GENM shares surged 7.2%. According to an article on The Edge Markets (24 Jul), GENM looks set to open the aforementioned theme park in the first or second quarter of 2020, instead of 2021, according to an analyst. The much quicker timeline can be attributed to GENM’s aggressive hiring program for the park.

Source: Macquarie Research - 26 Jul 2019