KUALA LUMPUR (Dec 30): Genting Bhd’s 52.7%-owned subsidiary Genting Singapore Ltd announced that it had placed eight Japan-incorporated wholly-owned subsidiaries under voluntary dissolution and liquidation.

In an announcement on Tuesday (Dec 28) to the Singapore Exchange, casino and hotel operator Genting Singapore said the subsidiaries placed under voluntary dissolution and liquidation comprise direct wholly-owned subsidiary Genting International Japan Co Ltd besides indirect wholly-owned subsidiaries BayCity Co Ltd, Genting Osaka Co Ltd, Genting Yokohama Co Ltd, MoonLake Co Ltd, Resorts World Osaka Co Ltd, Spark Yokohama Co Ltd and StarLight Co Ltd.

"The members’ voluntary dissolution and liquidation of the subsidiaries are not expected to have any material impact on the consolidated net tangible assets and earnings per share of the group (being the company and its subsidiaries) for the financial year ending Dec 31, 2021. 

"None of the directors or substantial shareholders of the company (Genting Singapore) has any interest, direct or indirect, in the above members’ voluntary dissolution and liquidation other than through their respective shareholdings in the company (Genting Singapore),” Genting Singapore added.

The company, however, did not specify reasons behind the voluntary dissolution and liquidation of the subsidiaries.

In corporate terminology, the phrase voluntary dissolution and liquidation refers to the process of winding up a company by its directors and shareholders when the company no longer serves its purpose to exist as a legal entity.

At a glance, the voluntary dissolution and liquidation of Genting Singapore’s Japan-based subsidiaries are not unexpected after Japan's Yokohama city cancelled the Yokohama integrated resort (IR) bid process, hence the discontinuation of Genting Singapore’s participation in the Yokohama IR bid.

Genting Singapore said in a filing with the Singapore Exchange on Sept 10, 2021 that the company was surprised and disappointed by the unexpected turn of events leading to the decision to cancel the Yokohama IR bid.

"We are surprised and disappointed by the unexpected turn of events leading to the city’s decision to cancel the Yokohama IR bid as the board of directors and management of the company, together with our consortium partners and supporting partners, have devoted considerable time and our best efforts to prepare and submit a compelling bid and proposed a significant investment that will benefit the city of Yokohama and its community — and at the same time make Yokohama a world-class tourism destination. 

"The company would like to thank all parties who have supported and contributed to our Yokohama IR bid, and we extend our best wishes to Yokohama city,” Genting Singapore said.

According to news reports, Genting Singapore earlier led a bid to win an IR contract in Yokohama after Japan passed in 2018 a bill permitting the construction of IRs in three cities across Japan.

"Osaka and Yokohama were in the running to host two of these resorts, and Genting Singapore was hoping to form partnerships for their operations. But it dropped out of the Osaka IR race in February 2020, which was eventually won by MGM Resorts in September 2021.

"In the same month, an anti-IR candidate won Yokohama’s mayoral election and the city withdrew its bid,“ Gambling Insider reported.

On Bursa Malaysia on Thursday, Genting Bhd shares were traded unchanged at RM4.71 at 10.52am, with a market capitalisation of about RM18.13 billion based on the company’s 3.85 billion issued shares.

The counter saw 426,700 shares transacted.