Analysts positive on Genting Malaysia's disposal of HK unit

Kuala Lumpur

EVEN though a related party transaction, analysts are positive on Genting Malaysia's disposal of its entire 16.9 per cent stake in Genting Hong Kong to Golden Hope Ltd (GHL) as it allows the gaming company to finally monetise its loss-making investment after nearly 20 years.

However, the sale by GenM of 1.43 billion GenHK shares to GHL - a company ultimately controlled by the Genting group's chief Lim Kok Thay and family - for RM1.71 billion (S$566.8 million) is unlikely to net shareholders a special dividend as the funds are earmarked for working capital and capital expansion purposes.