Genting Malaysia unit buys 13.2 million Empire shares from Kien Huat

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KUALA LUMPUR (Nov 5): Genting Malaysia Bhd's wholly-owned subsidiary Genting (USA) Ltd (GenUSA) had on Monday (Nov 4) purchased 13.2 million shares in Empire Resorts Inc from Kien Huat Realty III Ltd (KH) at US$9.74 a share under the planned Genting Malaysia-KH joint venture to privatise US-listed casino operator Empire.

"Following the proposed acquisition, GenUSA now holds a 38.3% equity stake in Empire on an undiluted basis and 33.3% on a fully diluted basis assuming full conversion of all preferred stock currently outstanding into Empire's common stock.

"The obligation of GenUSA and KH to consummate the proposed acquisition is independent of, and not conditional upon, the proposed merger," Genting Malaysia said.

On Aug 6 this year, Genting Malaysia said in a Bursa filing that Genting Malaysia and KH had on Aug 5 entered into a binding term sheet for GenUSA to acquire the 13.2 million shares in Empire at US$9.74 each for about US$128.6 million (RM538.8 million).

Genting Malaysia via GenUSA will together with KH submit a preliminary non-binding proposal to Empire to acquire by merger the outstanding shares held by shareholders of Empire unaffiliated with KH at US$9.74 each, according to Genting Malaysia.

At Bursa Malaysia's midday break today, Genting Malaysia shares settled up three sen or 0.93% at RM3.27. The stock saw 6.18 million shares traded.

Read also: Kok Thay sells loss-making Empire Resorts stake to Genting Msia