GENTING KEEPS ‘POKER FACE’ ON PLAN

But casino operator says acquisition allows it to differentiate itself from competitors

GENTING Malaysia Bhd confirmed it is paying US$126 million (RM514.14 million) to buy the Equanimity but the casino operator remains tightlipped on what it will do with the superyacht.

Genting Malaysia, in a filing to Bursa Malaysia yesterday, announced

the acquisition but offered little information on how it planned to optimise the use of the new asset.

The group said the superyacht would allow it to differentiate itself from competitors and provide an edge for its premium customers.

Supply chain specialist LLB International chief executive officer Prof Dr Marco Tieman said Genting Malaysia could offer gambling activities on the superyacht for its VIPs in international waters as an added value to its high-end business.

“It could be a wise move for Genting Malaysia.”

Genting Malaysia operates Resorts World Birmingham in the United Kingdom, Resorts World Casino New York City and Resorts World Bimini in the Bahamas, all of which are located near international waters.

Putra Business School business development manager Prof Madya Dr Ahmed Razman Abdul Latiff said the group could use the yacht for private and luxurious cruises between the resorts it owned in several cities.

“As a public-listed company, Genting Malaysia has probably decided that such an acquisition would contribute to maximising its shareholders’ value and is guaranteed to provide favourable return on investment.”

This could be achieved through strategic monetisation of the asset to capture a niche market that would put Genting Malaysia ahead of its competitors, he added.

Analyst Nazarry Rosli said Genting Malaysia might use the Equanimity for its premium cruise business.

“Genting Malaysia must have had some plan that can synergise with its business. This will help the company generate more revenue from the acquisition of Equanimity,” he said.

RHB Research senior research analyst Lee Meng Horng said the government must have arrived at a fair deal to let the vessel go at the price.

He said the government was already losing money monthly on maintenance costs and value depreciation.

“Based on (the Attorney-General’s Chambers’) statement, there was no higher offer,” said Lee on the initial plan to sell the yacht for no less than US$130 million.

Yesterday, Genting Malaysia’s share price rose 11 sen, or 3.47 per cent, to RM3.28, with 5.59 million units traded.