Just when you are about to go ballistic on Genting's stable of shares,they throw you a dampener spanner! So, there is cost overrun after all. And they not only gamble, but lie as well.The latest Reuter Report has this to tell.
Casino operator Genting Singapore plans to raise more than $1 billion through a rights issue to help fund its upcoming casino as well as build a war chest for possible acquisitions.It's a big issue.
Genting Singapore, which is about 54 percent held by Malaysian casino operator Genting Bhd, has almost completed building one of the city-state's two integrated casino resorts. It is also the largest casino operator in the United Kingdom.
The rights issue will be underwritten by a group of about eight banks, including UBS, JPMorgan, DBS and Deutsche.
Genting's Resorts World at Sentosa casino has been plagued by cost overruns due to the escalating price of steel and other building materials.The latest cost estimate for the casino is about S$6.59 billion ($4.63 billion), up from the S$5.2 billion price tag cited shortly after the firm won the Singapore bid in December 2006.
Genting Singapore's share price has more than doubled this year. It closed at S$1.19 on Tuesday, up from 45 cents at the end of 2008. Genting has reported losses since it listed in Singapore in December 2005 due to the cost of building its Singapore casino and write-downs related to its purchase of casinos in Britain.
For the second quarter ended June, the firm reported a net loss of S$50.7 million compared with a loss of S$1.8 million a year ago.
Oh, what a gamble. I do hope these Genting chaps know what they are doing.
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