Disclaimer: This article is in no way financial advice, nor solicitation to buy or sell shares in this company. It is purely for educational purposes only. You are highly recommended to conduct all necessary due diligence and make your own informed decisions before making any financial decisions. The writer already owns shares in this company and may at any point in time increase or reduce their position without prior notice. Do not try to copy trade!

For background reading on GENTING, please read our previous article exploring GENTING and its business: https://www.doitduit.com/p/audio-genting-berhad-the-widest-discount-in-its-history-with-potential-catalysts-ahead-for-value-rec

A major announcement was just released after both GENTING and GENM shares were suspended from trading today. This is a big deal involving the potential privatisation of a RM13 bil company.

I highly recommend reading the original announcement here: https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=162686&name=EA_GA_ATTACHMENTS

This announcement has a bigger impact to shareholders of GENM as it may impact your shareholding. For GENTING shareholders, no action is required on your part in relation to this corporate exercise.

I’ve already written a short note in the paid subscribers’ telegram group immediately after the announcement, while this will be a deeper view into the exercise. If you haven’t join the groupchat for paid subscribers, please join if you haven’t yet.

GENTING’s RM2.35 voluntary offer on GENM

I’ve taken snippets of certain important sections pertaining to the offer, so let’s go through them together.

Currently, GENTING owns 49.36% of equity interest in GENM and they wish to gain more shares in this company.

GENTING is making a cash offer of RM2.35 per GENM share to all GENM shareholders. Based on the closing price of GENM of RM2.14, this is a premium of about 9.8%. Of course, when the market opens on Tuesday 14/10/2025, it is very likely for GENM to gap up to close the discount between the market price and the offer price.

If all GENM shareholders agree to sell their shares to GENTING at the offer price, then GENTING is expected to have a maximum capital outlay of about RM6.75 bil. Of course, they may not get all the shares, so the actual capital outlay may be lower than that.

The takeover offer is conditional upon GENTING securing at least 50% of total issued GENM shares. Since GENTING already owns 49.36% of GENM, this means that they only require an additional 0.64% of shares to make this offer unconditional.

Since GENM for most of the past year was trading below the offer price, I think it is highly possible that the offer will end up being unconditional without many obstacles.

3 potential scenarios:

Be a paid subscriber to read the rest of the article!