KUALA LUMPUR (March 23): Genting Bhd’s indirect 52.7%-owned subsidiary Genting Singapore Ltd said the latter’s wholly-owned subsidiary Genting Singapore Aviation (GSA) had been placed under voluntary liquidation. 

Casino and hotel operator Genting Singapore, however, did not specify the reasons behind the voluntary liquidation of GSA, which was incorporated in the Cayman Islands.

"The voluntary liquidation of GSA is not expected to have any material impact on the consolidated net tangible assets and earnings per share (EPS) of the group (being the company [Genting Singapore] and its subsidiaries) for the financial year ending Dec 31, 2021 (FY21).

"None of the directors or substantial shareholders of the company have any interest, direct or indirect, in the above voluntary liquidation other than through their respective shareholdings in the company (Genting Singapore),” Genting Singapore said in a filing yesterday with the Singapore bourse.

In general and in theory, a company’s voluntary liquidation is a formal winding-up process proposed by the firm’s directors and shareholders for reasons including the cessation of a company’s intended purpose to exist.

A company’s voluntary liquidation does not involve the court.

Genting Bhd’s business has been closely watched against the development of the Covid-19 pandemic and the outbreak’s impact on the travel and tourism industry.

In notes accompanying Genting Bhd’s annual audited accounts for FY20, Genting Bhd said Genting Singapore was unable to estimate the financial impact on Genting Singapore’s results for FY21 as the global Covid-19 situation remained very fluid.

Genting Bhd said in the annual audited accounts filed with Bursa Malaysia on March 10, 2021 that Covid-19 had caused major disruption to the travel and tourism industry as the pandemic resulted in border closures and other measures imposed by various governments. 

"As part of the Singapore government’s circuit breaker measures, most of the service offerings of the Genting Singapore group’s integrated resort at Resorts World Sentosa, including attractions and the casino, were temporarily suspended from April 7, 2020 to June 30, 2020. 

"The Covid-19 pandemic had a negative impact on the Genting Singapore group’s financial performance for 2020 as the Genting Singapore group’s integrated resort was built predominantly to attract large-scale international demand,” Genting Bhd said.

At Bursa’s 12.30pm break today, Genting Bhd’s share price settled down 16 sen or 2.99% at RM5.20, with a market value of about RM20.02 billion.

Genting Bhd, which has 3.85 billion issued shares, also owns a 49.5% stake in Genting Malaysia Bhd (GenM).