Genting to net gain of RM1.9 b from sale of power business

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KUALA LUMPUR (Aug 14): Genting Bhd will reap RM1.9 billion from the proposed sale of its power business to 1Malaysia Development Bhd (1MDB), according to the company's detailed statement.
Late Monday (yesterday), the gaming group announced that it had entered into agreement to sell its entire stake in power business in Genting Sanyen (Malaysia) for RM2.108 billion. The group is also selling parcels of land on which the power plant is located.
"The Group is expected to record a one-off net gain of approximately RM1.9 billion from the proposed disposals, contributing to an increase of approximately 52 sen to Genting's consolidated EPS and NA per share for the current financial year.
“However, following the proposed disposals, the earnings contribution from the group’s power division will be reduced," said the statement.
It added the proposed disposals will not have any material impact on Genting's consolidated gearing.