Genting reaps $615m from S'pore unit stake sale

SINGAPORE: The family that owns Malaysian gaming firm Genting Bhd sold about 9 per cent of shares in its Singapore unit to institutions yesterday, raising US$425 million (S$615 million), two sources with knowledge of the deal told Reuters.

A total of 853.8 million Genting Singapore shares were sold at S$0.72 a share, a discount of around 17 per cent on its last closing price, raising S$615 million.

The sale, through the family's vehicles Golden Hope and Lakewood, was aimed at boosting the stock's liquidity, according to one of the sources.

Shares of the unit dropped more than a fifth. In Malaysia, shares in Genting, which is controlled by the family of chairman and chief executive Lim Kok Thay, fell 4.5 per cent.

The Genting Singapore shares were sold at the lower end of a S$0.72-S$0.76 per share range listed in a term sheet seen by Reuters.

Analysts in Malaysia said it is no secret that Genting has been scouting around for investment opportunities in Macau and Las Vegas, but the Genting Singapore stake sale appears to take advantage of the steep rise in the firm's share price.

Genting Singapore shares had more than doubled since early March to S$0.89. Genting shares in Malaysia have been up 7.6 per cent since last Wednesday.

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