Genting Malaysia Bhd (GenM) submitted a plan to pay off debts in the short term by channelling another US$150 million (RM625 million) into its US-based unit Empire Resorts Inc.
On October 10, the wholly-owned unit of GenM Genting ER II LLC was asked to subscribe for Empire Series L Preferred Stock for up to US$150 million, according to an exchange report.
After considering a long-term financing plan, they intend to move forward with the injection of funds that will be used to partially repay the existing debt of US$356 million as well as for financing-related expenses.
“The proposed equity injection will also allow GenM to reinforce its position and grow its market presence in the New York State gaming market by leveraging synergies between RWNYC (Resorts World New York City) and RWC (Resorts World Catskills) to achieve cost savings and grow business volumes and revenues as well as capitalise on the prospects and future growth of Empire,” it says.
GenM says by leveraging synergies between RWNYC (Resorts World New York City) and RWC (Resorts World Catskills), GenM hopes to achieve cost savings, increased business volumes, and revenues, as well as capitalise on Empire’s prospects and future growth.
The group has invested up to US$524.4 million in Empire from the proposed equity injection and GenM’s stock rose four sen, or 1.27 percent, to RM3.19, bringing the total market capitalisation to RM18.94 billion.
