The Macau Poser

Quelling issues that Genting may have problems acquiring shares in MGM's Macau operations,Lim Kok Thay, chairman and chief executive of both Resorts and Genting, told shareholders today at the Resorts World AGM that he did not see any obstacles in investing in the Chinese gambling enclave of Macau, if the opportunity should arise.

However, he told the meeting that no proposal has been made at this juncture, apart from some initial share uptake and subscription of debt notes in the US parent company. "The answer (on whether to invest in Macau) is a big maybe. It depends on what the situation is," Lim said.

The prices of both Genting and Resorts World went up in May on speculation that the group is finally setting foot in Macau. Prices were capped when a dampening Credit Suisse report forewarned of likely issues that they may have with the regulators in Singapore as Pansy Ho is involved in that project.

The Malaysian group recently subscribed for a combined $100 million worth of notes issued by MGM Mirage and purchased a 3.2 percent stake in MGM, a move MGM senior vice-president for public affairs Alan Feldman said made strategic sense.

Many analysts are of the view that Resorts is the likely vehicle within the group to undertake an overseas acquisition as it has over $1.3 billion in net cash and zero gearing.

Others say, Lim's private vehicle, Kien Huat may be the likely party to be involved in Macau as they have successfully cashed out of Genting Singapore recently. For a start, Resorts may just play a peripheral role in running the operations alongside MGM.

Whatever is the final outcome,in one way or another, Resorts World is certainly spreading its wings into Macau.

Kok Thay also said that the Board may consider paying additional dividends as suggested by minority shareholders at the meeting this morning, if the economy improves.