Justin Leong, the investment head chief at Gentings said that “Genting Malaysia is aggressively searching for opportunities to invest in the U.S. casino gaming market.” He indicated that the strategy is towards building a US presence.
Armed with $1.7 billion in cash and debt free, Genting Malaysia is seeking acquisitions , new markets and potentially a strategic partnership in the U.S.
Earlier this month, it also bid to develop a slots casino at Aqueduct Racetrack in New York City.
It's foray into the US started with it buying MGM Mirage bonds.
The company bought MGM Mirage ’s secured bonds in May 2009 when the Las Vegas Strip’s biggest casino owner raised cash to avoid a potential bankruptcy. Genting Malaysia has invested in every capital issue by Las Vegas-based MGM since its first foray into the U.S. casino market. Apparently that relationship will continue.
Genting Malaysia is also looking at developments and new gambling jurisdictions opening in the U.S.
The bid for Aqueduct “is another step.”
Kerkorian’s Stake
The investments include $100 million of bonds secured by MGM’s Bellagio and Mirage properties in Las Vegas, 9 percent notes tied to MGM Grand and MGM Mirage’s recently issued convertible senior notes.
Kirk Kerkorian , who founded MGM Mirage and is its biggest shareholder, said in October that his Tracinda Corp. is exploring “strategic alternatives” for its 37 percent stake.
The investor, 93, said in regulatory filings that MGM Mirage is undervalued and he is open to proposals.
Leong wouldn’t elaborate on Genting’s interest or say whether there have been talks with Kerkorian, whose stake in MGM Mirage is valued at $1.9 billion.
The shares rose 14 cents to $11.60 on June 11 in New York Stock Exchange composite trading and have gained 27 percent this year. Winnie Lerner , an outside spokeswoman for Tracinda, and Alan Feldman , a spokesman for MGM Mirage, declined to comment.
MGM Mirage and partner Pansy Ho hold one of the six casino licenses in Macau, the southern Chinese city that is the world’s largest gambling hub. Ho is the daughter of Macau casino billionaire Stanley Ho .
‘Faster, Sooner’ revenue from the Malaysian casino, a gambling monopoly held for almost four decades, helped build the Genting Bhd. empire that includes hotels, Star Cruises and Norwegian Cruise Lines, power generators and palm oil plantations.
In February, a Genting affiliate opened Singapore’s first casino, a $4.7 billion resort with a Universal Studios theme park , adding to the group’s Resorts World casinos in Malaysia’s highlands and the Philippines capital of Manila.
Genting also is the biggest casino owner in the U.K., operating under the Circus, Maxims and Mint brands.
There is competition for deals in Las Vegas as the city recovers from its worst economic slump on record.
Hedge fund billionaire John Paulson is acquiring a 9.9 percent stake in Harrah’s Entertainment Inc. In May, his New York-based Paulson & Co. said it owned 9.1 percent of MGM Mirage and 4.6 percent of Boyd Gaming Corp.
Genting Malaysia has held investment talks with large U.S. casino companies since December 2008, Leong said, declining to specify them. “I wish I had worked faster and done something sooner,” Leong said.
Leong, a nephew of Genting Chairman and Chief Executive Officer Lim Kok Thay and grandson of founder Lim Goh Tong , joined the family company in September 2004 after about four years at Goldman Sachs Group Inc.
Aqueduct Auction Genting is one of six potential bidders vying to renovate Aqueduct Racetrack and operate a slot machine-style “racino” with 4,500 video-lottery terminals in Queens. The latest round of proposals, which require a minimum $300 million up front, are due June 29. The family’s closely held Kien Huat Realty previously invested in three U.S. casino ventures, and last month partnered with the Mashpee Wampanoag Tribe to finance a proposed casino resort in Massachusetts.
In the early 1990s, Kien Huat financed the Foxwoods Resort & Casino in Connecticut, whose tribal owners defaulted on about $2.5 billion of debt last year, and the Seneca Niagara Casino in New York. In August, Kien Huat paid $55 million for 50 percent of Empire Resorts Inc. , owner of the Monticello Casino & Raceway in Monticello, New York, helping Empire to restructure some debt.
So,where do you think Gentings is heading? They have tentacles all over the world, so it seems!
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