Genting acquisition ventures

GENTING Singapore is looking to expand in Asia, but the questions is, where will its invest its cash? According to reports, the company, which runs one of Singapore’s two casino resorts, issued 1.8 billion Singapore dollars (US$1.4 billion) of perpetual bonds last month and is now in the middle of issuing up to S$700 million more. The bonds pay 5.125%—not too pricey, but annual interest payments of up to S$128 million …

Genting Singapore chief financial officer Lee Shi Ruh says the proceeds from the perpetual subordinated capital securities issue would be used by Genting Singapore for the company’s “expansion and ventures into new acquisitions or greenfield projects”.

 “Should the opportunities arise, Japan and Korea are the options we can look at. The funds raised will put us in a strong position for potential overseas investments,” she says in an email reply to StarBizWeek.

 Insiders have stated that Genting could be looking to expand in Japan or South Korea, as the firm indicates a possible growth overseas, despite its Miami venture failing.

Genting group has indicated its appetite for future casino development amounting to some S$5bil in the immediate to medium term.

 “Japan is mulling over liberalising the casino industry for a while but regulatory risk with regards to casino licencing will continue to hinder Genting’s plan to penetrate into the country,” an analyst, says, adding that Genting would be more cautious in its approach after the setback of its Miami venture when the state legislature pulled a vote to liberalise gambling activities in Florida.

 He believes Genting group would be able to hold its own and bid for casino projects if it materialised in Japan or South Korea due to its track record in Singapore, Malaysia and the Philippines.