Fresh, which has completed the acquisition of U.S. casino operator MGM Resorts International and Las Vegas' prestigious Cosmopolitan, is reportedly exploring the possibility of buying Asian rival Genting Singapore Limited.

According to a report by Asia Gaming Brief, the Las Vegas-based company's move will come just as many Asian countries are beginning to emerge from coronavirus-related travel and social distancing restrictions. While Genting Singapore Limited is in charge of developing Singapore's huge resort world Sentosa, total revenue in the last six months of 2021 was brought to around $381.5 million, down 17% year-on-year, the source explained, which translates into a 16% drop in revenue from related games to just $267.8 million.

Discussion:

MGM Resorts International has reportedly already held preliminary talks with Malaysian billionaire Lim Kok Thai on a possible acquisition of Genting Singapore Limited. The 70-year-old holds an overwhelming 52.76% stake in the Singapore-listed casino operator, while also serving as chief executive of its larger compatriot Genting Malaysia Berhad.

Key Properties:

Opened in early 2010, Resort World Sentosa has about 1,800 rooms across seven hotels, along with a 160,000-square-foot casino, and is said to offer 2,400 slots and more than 550 game tables. The Harborside facility also holds gambling licenses that do not expire until 2030, and the government recently reportedly granted permission to expand the gaming floor by 5,381 square feet more to accommodate 800 additional machines.

Stock suspension:

Asia Gaming Brief said in a second report that such a new speculation had asked for Genting Singapore Limited's stock trading to be temporarily halted. The value of these individual shares was reportedly down about 3.2% since the start of the year, but the rumours had put them up about 9% earlier today, making them worth $0.57.

Potential issues:

However, Asia Gaming Brief added that any deal to acquire Genting Singapore Limited could be complicated by the need for approval from Singapore casino regulators and the small island nation's interior ministry. It also said bonds guaranteed by Genting Malaysia Berhad would require the operator to remain a subordinate and immediately pay off outstanding debt in the event of a major shareholder ownership change.

Race Course:

Nevertheless, according to data from U.S. investment bank JPMorgan Chase and Company, these deals reportedly mentioned that Genting Singapore Limited could provide a pathway to the highly profitable Macau casino market. The group reportedly disclosed that while the entire process may spark a bidding war, the sale of a portion of its stake in MGM Resorts International is now more likely than a full acquisition.

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