Analysts see Genting Malaysia offer as low, say upside not priced into bid

[KUALA LUMPUR] Shares of Genting Malaysia (GENM) and parent company Genting Bhd (Genting) rallied on Tuesday (Oct 14) on news of a massive buyout bid worth RM6.7 billion (S$2.1 billion) that could see the group’s crown jewel delisted from Bursa Malaysia.

Analysts appear mixed on the price tag of RM2.35 apiece under the conditional voluntary takeover offer (VTO) by Genting to acquire the remaining 50.64 per cent or 2.87 billion shares in GENM that it does not already own.

At first glance, the VTO price “appears a tad attractive”, said Maybank Investment Bank.