Genting’s UK Casinos – A Hot Potato

Posted: July 5, 2010 in Uncategorized

5 July 2010    Mon

Quick Opinion by Professional Ground

The Professional Ground got a spot on again in qouting that the UK casinos sold by Genting Singapore to its Malaysian parent compoany (Genting Malaysia) is indeed a Hot Potato.
Today’s local news highlights analysts’ comments that this movement is “distroying value” of Genting group. In current market environment, the risk exposure is higher than what the current share prices quoted.  Genting Malaysia share price plunged 4.4% on the news of buying over the loss-making UK casinos (Genting-Stanley which inlcudes brands such as Circus, Maxims, Mint). 
To hope for UK to open up (liberalized) its casino market remains a long long shot.
In our opinion, we had pointed out that this is a move to shift the “hot potato” away from Genting Singapore in order that, its Singapore IR investment will show a “better than expectations” quarterly results in the subsequent quarters to instill investors confidence.  The Genting RWS IR was invested with high gearing (debt financing).
In essence, an old trick-old wine game.

Just how long more Genting group would hold on to this hot potato?


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