KUALA LUMPUR (Oct 1): Genting Bhd and the Lim family are disposing of their online gaming business in the UK to cash-rich Genting Malaysia Bhd (GENM), Genting's 49.3%-owned subsidiary, for £7.2 million (approximately RM48.09 million) cash, to streamline the group's gaming business there under one management.

The online gaming business is currently parked under Genting Alderney Ltd, which is wholly-owned by RWI International Investments Ltd, in which Genting and its chairman and chief executive Tan Sri Lim Kok Thay each has a 50% indirect interest.

Currently, GENM operates land-based casinos in the UK through Genting UK Plc (GUK), its indirect wholly-owned unit.

GENM's indirect wholly-owned unit Nedby Ltd entered into a conditional sale and purchase agreement today with RWI International for the acquisition, according to GENM's filing on Bursa Malaysia.

The disposal, which does not require any regulatory or shareholders' approval, is expected to be completed in the fourth quarter of the year.

GENM intends to finance the purchase using internally-generated funds of the group and/or its subsidiaries. As at June 30, GENM's cash and cash equivalents stood at RM2.75 billion.

"GENM Group is optimistic about the future outlook of the UK online gaming in the long term as the operating environment in the UK gradually strengthens and the economy improves moderately.

"Following the proposed acquisition, the operations of Genting Alderney and GUK are expected to be streamlined as an integrated online, mobile and retail gaming business under the focus of a single management in order to deliver a seamless multi-channel customer experience in the UK," the filing read.

Genting Alderney's presently offers live online casino, casino games, sports betting and poker over the Internet. It has a full e-gambling licence from the Alderney Gambling Control Commission and a combined remote operating licence from the Gambling Commission of the UK to manufacture, supply, install or adapt gambling software, to operate casinos and to act as a betting intermediary.

GENM's shares closed 5 sen or 1.2% higher at RM4.20, with a market capitalisation of RM23.81 billion.

Genting, meanwhile, was up 17 sen or 2.34% at RM7.44, which gives it a market capitalisation of RM27.66 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)