Genting Malaysia (GENM, 4715, main board consumption) has made a significant change in its plan to sell the Miami land. Instead of selling the four pieces of land owned by its wholly-owned subsidiary Resorts World Miami, the buyer, Smart Miami City, has exercised the conversion right and decided to directly acquire all the shares of the subsidiary for a bid of US$1.225 billion (approximately RM5.467 billion).
Genting Malaysia reported this development to the Bursa Malaysia Stock Exchange, informing shareholders of the revised plan. The company stated that negotiations between the two parties regarding this change are underway, and once a revised agreement is reached, more details of the transaction will be announced.
The decision to shift from selling the land to a direct acquisition by Smart Miami City marks a significant alteration in the original plan announced by Genting Malaysia on April 27 of this year. The sale of the four pieces of land was initially expected to generate approximately US$967 million (approximately RM4.315 billion) in profit for Genting Malaysia.
This change in strategy is likely to have implications for Genting Malaysia’s financial outlook and future business ventures. The direct acquisition by Smart Miami City brings the land and its potential development directly under the control of the buyer, allowing for more comprehensive and direct involvement in the project.
The Miami land has long been considered a valuable asset for Genting Malaysia, with potential for significant returns on investment. The revised agreement between Genting Malaysia and Smart Miami City reflects a shift in the company’s approach to maximizing the value of its assets and exploring new opportunities in the real estate and development sectors.
As negotiations between the two parties continue and a revised agreement is finalized, investors and industry observers eagerly await further details regarding the transaction. The outcome of this deal will undoubtedly shape the future prospects and direction of Genting Malaysia as it strives to leverage its assets and expand its presence in key markets.