- Flexi Group
Genting Singapore denies reports of potential sale to MGM
Casino operator Genting Singapore has rejected various media reports that has received a takeover approach from MGM Resorts International.
Bloomberg and The Straits Times last week reported that MGM Resorts had approached the operator over a potential deal, and while no agreement was reached, a number of other parties have also begun to explore the possibility of a takeover.
Following the reports, stock in the business jumped as much as 9.3% in morning trading on 15 July, the most in nearly two years, before Genting Singapore called for a trading halt at 1pm.
This led to Singapore Exchange issuing a query to the operator over what it described as “unusual price movements”, asking if Genting Singapore was aware of any information that may have caused this activity.
In its query, the Singapore Exchange said events that are potentially material and price-sensitive, such as discussions and negotiations that may lead to joint ventures, mergers, acquisitions or purchase or sale of a significant asset, as potential causes for the price rise.
While Genting Singapore responded by saying it was not aware of, nor has it been party to, any ongoing discussions concerning such a potential transaction, it did reveal details of an “unsolicited” approach regarding the holding of its indirect controlling shareholder.
The operator said its executive chairman Tan Sri Lim Kok Thay, who is also the indirect controlling shareholder of the business did receive an unsolicited approach for its shareholding in the, but this was not pursued.
However, it also said that it was not aware of any information not previously announced concerning the business, its subsidiaries or associated companies that might explain the trading on 15 July.
Genting Singapore added that it would make any necessary disclosures at the appropriate time, in line with Singapore Exchange rules.