This article first appeared in The Edge Malaysia Weekly on December 25, 2017 - December 31, 2017

INITIALLY, it was difficult to get the details of the family feud at gaming and leisure outfit Genting group. Those in the know kept a tight lid on information.

However, now that the cat has been let out of the bag, more claims are being made and the rift in the Lim family is apparent.

There are several ongoing court cases, four of which The Edge knows of.

The patriarch of Genting group, Tan Sri Lim Goh Tong, died in 2007. He and his wife Puan Sri Lee Kim Hwa @ Lee Ah Sang, who died in August this year, had six children. The elder three are daughters Lim Siew Lay, Lim Siew Lian and Lim Siew Kim, while the younger three are sons Datuk Lim Tee Keong (died a bankrupt in April 2014), Tan Sri Lim Kok Thay (currently runs the Genting group) and Datuk Lim Chee Wah.

One known dispute is between the children of Tee Keong and their uncles, Kok Thay and Chee Wah. In a nutshell, Tee Keong’s children, Joey Lim Keong Yew, Benjamin Lim Keong Hoe and Marie Lim Seok Leng, are disputing — among other things — their father’s will, and questioning the reason for them being left out of a trust left by their late grandfather.

In another case, Keong Hoe is disputing the supposed absolute power of attorney his late grandmother had given over her affairs to his uncles Kok Thay and Chee Wah, some two years after she had a stroke. Interestingly, the power of attorney is irrevocable, applies worldwide and gives Kok Thay and Chee Wah wide-ranging power over their mother’s assets.

In a separate dispute, Goh Tong’s daughter, Siew Kim, has filed a suit against Kien Huat Realty Sdn Bhd — the holding company of flagship Genting Bhd — and her brother Kok Thay. In the statement of claim, Siew Kim alleges that she is the beneficial owner of 796,250 shares in Genting, and that Kien Huat Realty is holding the shares in trust for her.

In November, Kok Thay and his son Lim Keong Hui surfaced as major shareholders of Genting, controlling 42.62% equity interest in the gaming giant.

Kok Thay is president and chief executive of Genting while Keong Hui is an executive director of the gaming empire, which is worth billions.

A large portion of their indirectly owned shares are held through Kien Huat Realty. A smaller block of 152.65 million shares — or about 4% of Genting’s share base — is controlled through Golden Hope Ltd while 8.9 million shares are held via Inverway Sdn Bhd. These companies, Genting said, hold the shares as trustees for Kok Thay and Keong Hui.

Through their 42.62% stake in Genting, Kok Thay and Keong Hui are also controlling shareholders of Genting Plantations Bhd, with a 50.67% stake, and Genting Malaysia Bhd with 49.37% equity interest. Other assets under Genting include a 52.9% stake in publicly traded Genting Singapore PLC. 

Tan Sri Lim Kok Thay

President and CEO, Genting Bhd

With his 42.62% stake in Genting, Kok Thay, 65, is one of the world’s most prominent gaming barons, with casinos in Asia, the US and Europe.

To put things in perspective, for its nine months ended September this year, Genting’s net profit surpassed the RM1.2 billion mark while revenue was in excess of RM14.76 billion.

While the legal wrangling continues, it will be interesting to see what Kok Thay’s plans are for Genting.

It has casinos under brand names such as Genting Grand, Genting Club, Crockfords and Maxims. The sprawling giant also has businesses in hospitality, plantation, oil and gas and power generation, among others.

Collectively, the market capitalisation of all companies under the Genting umbrella listed on Bursa Malaysia is in excess of RM60 billion. Kok Thay also controls Genting Singapore PLC and Genting Hong Kong Ltd, both of which are listed in their respective countries.

Kok Thay’s plans are clearly for his son Keong Hui, who is seven years younger than his cousin Keong Yew, to take up the reins at Genting. Keong Hui, 32, is an executive director of Genting, and was appointed to the board in June 2012.

Joey Lim Keong Yew

Managing Director and CEO, Donaco International Ltd

According to Chinese tradition, the eldest son should inherit the family’s wealth. Keong Yew, 39, is the eldest son of the eldest son (Tee Keong) and thus, should have been the one in the third generation to be left with the family’s estate. However, this is not the case.

He and his siblings are determined to find out what their late grandfather has left them and their heirs, in what is known as the Tee Keong Family Trust.

The siblings have assets they have amassed on their own. For instance, Keong Yew has a 31.8% stake in Donaco International Ltd, and an additional 17.4% equity interest in the company that is held jointly with his brother, Keong Hoe.

Donaco has two main assets. The first is casino-cum-hotel Star Vegas in Poipet, Cambodia, and the second is Aristo International, a hotel with an adjoining casino, in Lao Cai, Vietnam.

Based on current prices, Donaco has a market capitalisation of more than A$236 million (RM737.7 million). Nonetheless, the value of his holding in Donaco is nowhere near that of the assets in Genting group.

Will Keong Yew and his siblings continue to rock the boat in the coming year, and will they successfully gain control of any significant asset left by their grandfather? Watch this space.

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