US gambling giant MGM Resorts International has been reportedly taking a closer look into the possibility of acquiring Genting Singapore. According to reports, MGM has already held talks with the Lim family to either invest in Genting or acquire it in its entirety. Genting is the parent firm of Resorts World Sentosa.
COVID-19 Restrictions Are Being Lifted in Asia, Genting May Experience a Massive Rise
According to Bloomberg, MGM has approached the family and although no agreement has been reached, MGM is still interested in continuing its pursuit in the company. The reason why is that MGM sees Genting Singapore as a profitable entity, especially because the COVID-19 restrictions in Asia are slowly being lifted.
Interestingly enough, Genting Singapore was among the rare businesses to remain profitable throughout the pandemic. Recently, it reported a 14% YoY revenue increase to $225 million. After the news of a potential takeover broke out, the stock price of Genting Singapore rose more than 9% on Friday morning (July 15).
Currently, Genting Singapore is valued at around $7 billion and the Genting Bhd., a Malaysian conglomerate that is controlled by the Lyn family, owns 53% of Genting Singapore.
Additionally, Genting Singapore operates Resorts World Sentosa, a 49-hectare resort that has over 550 tables and upwards of 2,400 slots.
Bloomberg reached out to MGM on the reports, but the operator declined to give any comments. A spokesperson for the Ministry of Trade and Industry in Singapore stated that IR operators must seek a green light from the government of Singapore before selling a subdivision and as of right now, no requests concerning the change in ownership of Resorts World Sentosa have been received.
MGM Is Looking to Expand Massively in Asia
MGM is currently the front-runner to win the license to build an integrated resort in Osaka, Japan. If the operator gets the green light, it plans to start working on the project in 2023. Bill Hornbuckle, the CEO, and president of MGM stated that the project is worth around $8.3 billion, and if all the necessary approvals are gained, it will likely be opened by the end of the decade.
The city of Osaka released data that noted that the IR can attract as many as 20 million visitors annually. MGM’s basic development plan was released in February. Additionally, the company has recently increased its presence in mainland China after it opened a hotel in a joint venture with Diaoyutai State Guesthouse. Since online gambling has been on the rise in recent years, MGM is also looking to expand in this sphere. Back in May, it upped its game by making a $607 million bid to purchase LeoVegas, one of the most reputable online casinos in the world.