Thursday October 01,2015 : MALAYSIAN FAMILY SET TO SELL U.K. ONLINE GAMBLING INTERESTS
Lim family in GBP 7.2 million deal on Genting Alderney.
According to filings today on the Malaysian stock exchange, the Lim family have agreed to sell their Genting Alderney online gaming business in the UK to Genting Malaysia Bhd, a 49.3 percent owned Genting subsidiary, for GBP 7.2 million in cash, the motivation being to streamline the group's gaming business under one management.
Genting Alderney Ltd, is wholly-owned by RWI International Investments Ltd, in which Genting and its chairman and chief executive Tan Sri Lim Kok Thay each hold a 50 percent indirect interest.
Currently, Genting Malaysia Bhd operates land-based casinos in the UK through its wholly-owned Genting UK plc. Genting Malaysia Bhd's subsidiary Nedby Ltd signed the conditional sale and purchase agreement today with RWI International for the acquisition.
The disposal, which does not require any regulatory or shareholders' approval, is expected to be completed in Q4-2015, and will be financed by internally-generated funds of the group and/or its subsidiaries. As at June 30, Genting Malaysia Bhd cash and cash equivalents stood at RM2.75 billion.
A company statement said that Genting Malaysia Bhd is optimistic about the future outlook of UK online gaming in the long term as the operating environment in the UK gradually strengthens and the economy improves.
"Following the proposed acquisition, the operations of Genting Alderney and Genting UK plc are expected to be streamlined as an integrated online, mobile and retail gaming business under the focus of a single management in order to deliver a seamless multi-channel customer experience in the UK," the filing read.
Genting Alderney's presently offers live online casino, casino games, sports betting and poker over the Internet. It has a full e-gambling licence from the Alderney Gambling Control Commission and a combined remote operating licence from the UK Gambling Commission to manufacture, supply, install or adapt gambling software, to operate casinos and to act as a betting intermediary.
Genting Malaysia Bhd shares closed 1.2 percent higher on the news, giving it a marketcap of RM23.81 billion.