KUALA LUMPUR (March 11): Genting Bhd and Genting Malaysia Bhd (GenM)'s share prices rose today from their readjusted ex-dividend closing share prices yesterday as both companies' shares trade ex-dividend today.
At noon market break today, Genting ended 5.5 sen or 1.09% higher at RM5.11 from its readjusted ex-dividend closing share price of RM5.05 yesterday.
Meanwhile, GenM climbed 4.5 sen or 1.47% to RM3.12 from its readjusted ex-dividend closing share price of RM3.06 yesterday.
Both companies, which are involved in casino and hotel operations, earlier proposed to each pay a special dividend of 8.5 sen a share to reward shareholders.
Genting registered a net loss for the financial year ended Dec 31, 2020 due to the adverse impact of Covid-19, in particular in respect of the group’s leisure and hospitality division, it said in its annual audited accounts posted on Bursa.
The impact caused unprecedented disruptions to GenM that resulted in the temporary closure of its resort operations worldwide from mid-March 2020 in compliance with the respective governments’ directives, it said.
To mitigate the impact of the pandemic, GenM had reduced its operating costs following the re-calibration of the group’s operating structure and right-sizing of its workforce.
It has also leveraged on governments’ supported schemes introduced in response to the Covid-19 pandemic to manage its cash flow and liquidity requirements during this difficult period.
“To shore up liquidity, Genting Malaysia group’s operations in the US has successfully completed the US$525 million offering of 3.3% five-year senior notes due 2026, in February 2021. The proceeds from the senior notes will be used to refinance the existing indebtedness and for general corporate purposes,” it said, adding that the group would have sufficient cash flows to fulfil its obligations and finance its ongoing operations.
GenM said it expects business operations to gradually return to normal operating levels, aided by the progressive roll-out of mass vaccination programmes globally.