A Deeper Look Into The Genting Group

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There are large numbers of articles about GENTING available, their generous campaign contributions and much else. 



Genting was the financier of the Seneca Niagara Casino Hotel in Niagara Falls, New York. Genting charged the tribe an exorbitant 28 percent interest rate, potentially in violation of the Indian Gaming Regulations under the Bureau of Indian Affairs. Genting also stayed in the deal for almost 15 years when they were legally limited to five. Seneca Tribal Council members have testified that armed Chinese thugs showed up to collect Genting’s money when tribal lawyers pointed out that Genting was violating the law.

Genting Connected to Islamic Extremists?

A Deeper Look Into The Genting Group

By Stanley Lim, CFA - December 9, 2015

Most investors in Singapore know about the Genting Group through the aplty-named multi-billion tourist attraction located at Sentosa Island, Resorts World Sentosa.

However, the integrated resort, which is owned by the Singapore-listed Genting Singapore PLC (SGX: G13), represents only one segment of the Genting group of companies. In fact, the main holding company, Genting Berhad (KLSE:3182.KL), listed on the Kuala Lumpur Stock Exchange, is one of the largest conglomerates in Malaysia.

Genting Berhad’s business interests stretch from leisure & hospitality to property development, agriculture, biotechnology, and even energy and oil & gas. In this article, let’s take a deeper look at the whole Genting family.

Source: Companies’ annual reports

Genting Singapore is one portion of the entire group’s leisure and tourism business. With a focus on integrated resorts (a combination of casinos, hotels, and various other attractions like theme parks), Genting Singapore is now developing a new project in South Korea, the Resorts World Jeju, which is expected to open in 2017. Beyond South Korea, Genting Singapore is also looking at opportunities in Japan.

Genting Berhad holds other tourism-related businesses through Genting Malaysia Berhad (KLSE:4715.KL). The latter owns and operates its flagship Genting Highlands resorts in Malaysia. It also has gaming interests in the United Kingdom, United States, and Bahamas. Genting Malaysia Berhad is also the largest shareholder of Genting Hong Kong Limited (SGX: S21), the operator of a leading cruise line, Star Cruises.

The agriculture and property interests of Genting Berhad come from its 52.6% ownership of Genting Plantation Berhad (KLSE.2291.KL), which is one of the largest palm oil plantation owners in Malaysia and Indonesia with a landbank of over 245,000 hectares. To put that into perspective, the land area of Singapore is around 72,000 hectares. The company has also developed properties on agricultural land that have already matured in value.

Lastly, Genting Berhad has made significant direct investments into the energy and oil and gas sectors.

The largest shareholder of Genting Berhad is Kien Huat Realty, an investment holding vehicle for the Lim family. Understanding the entire Genting group’s structure would allow investors to have a better grasp on some of the business decision that are made by each company’s management teams.

Furthermore, by looking at the past decisions the Genting group has made, investors would be able to analyse if the conglomerate has been fair to minority investors of any of the listed Genting group of companies.

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Tackling Prostitution, Corruption and Gambling....

PUBLISHED: Nov 22, 2014 04:45pm

UPDATED: Nov 22, 2014 04:45pm

Malaysia looks to China to tackle prostitution, corruption and gambling

Home Minister Datuk Seri Ahmad Zahid Hamidi says the ministry and the police will send their officers to China to learn in detail the success of the police there.

PUTRAJAYA, Nov 22, 2014:

 

The Home Ministry is keen to learn from the success of the Chinese police in tackling four aspects of law enforcement — modern policing, online gambling, corruption and prostitution.

 

Minister Datuk Seri Ahmad Zahid Hamidi said the ministry and the police would send their officers to China to learn in detail the success of the police there.

 

Commenting on the success of the Ministry of Public Security and the Chinese police in curbing online gambling, Ahmad Zahid said they could curtail these activities successfully although there was no online gambling server in China.

 

“The servers are not available in Malaysia nor in China, but are available in other countries, which makes it difficult to curtail.

 

“However, the Chinese police have managed to handle the problem well,” he said after visiting the exhibition in conjunction with the 60th anniversary of the Film Censorship Board (LPF) in Alamanda here today.

Ahmad Zahid added that the ministry would study several methods used in China.

On cooperation to tackle corruption, Ahmad Zahid said corruption, which was previously rampant and obvious among enforcement officers, including the police in China, had successfully been resolved.

“This success is being studied to strengthen the police’s integrity department to curtail corruption and strengthen integrity.”

Read more: http://www.therakyatpost.com/news/2014/11/22/malaysia-looks-china-tackle-prostitution-corruption-gambling/#ixzz3JpiEWxzf

Genting

Genting is the financial Sugar Daddy of the Mashpee Wampanoag Tribe in Massachusetts.

Genting Should Re-evaluate Miami or Get Out

Posted: 01/22/2014

 

J.J. Colagrande

Writer; Professor; Journalist; Author of the novels "Headz" and "Decò"

 

 

The mega-conglomerate needs to sell its properties in Miami. The Malaysian-based casino operators have proven they are only interested in one thing: opening big casinos.

In the Downtown corridor, Genting owns the Herald building, the lot across the street, the Omni building, the 1400 block of Biscayne Boulevard and a few other lots behind that. In 2011, plans to build the world's largest casino fell through and they pivoted, promising to build with or without casinos. In March of 2012, Curbed Miami reported:

Genting plans to replace the Herald with three condo towers and a luxury hotel, with parks to the north and south, and a wide baywalk linking to Museum Park... and there isn't a casino in sight.

In July, Genting told the Miami Herald:

We've listened and we've heard what people said. This will complement the existing downtown skyline. We want to make sure we put a project forward that everybody is happy with and that adds value to the city of Miami.

Are we supposed to believe this?
It's been 22-months, and the Herald building still stands.
They have not broken ground on any of their properties.

Instead, they bought a gambling boat to Bimini that is a total fail.

And last week they announced plans to go ahead with a casino.

Genting's plans to operate a casino with a permit from Gulfstream Park have been decried as illegal by the Florida Division of Pari-Mutuel Wagering. How did Genting respond?

As reported in the Sun-Sentinel, the Gulfstream partnership "is just one opportunity or potential opportunity. If it's not viable, then we'll pursue other means."

Pursue other means? Do we need more proof? Maybe they haven't built anything because their vision has always been to open the biggest casino in the world in Miami.

They probably envisioned the casino on the Herald site, and then parking lots stretching all the way back to I95. If they planned otherwise, then why has nothing happened?

They likely have no interest in real estate; their primary business is gambling. It's always been about gambling. It will always be about gambling with the Genting Group.

It has been laid bare now. To suggest something so ridiculous, so antithetical to the development in the urban core, and so obviously not legal, pretty much shows their true colors. Genting lied to us and their credibility is suspect, to say the least.

This company seems mismanaged in the Americas.

Maybe they're used to doing business in a country (Malaysia) that is more corrupt where they can get away with whatever they want? Because what gall they displayed by buying all this property in the middle of our emerging cultural capital when gambling wasn't even legalized. It's like they thought they could just come in here and buy whatever or whoever they wanted, as if Miami is as corrupt as Malaysia. We're not that corrupt.

And then the gall to build the largest casino in the world? It's crazy. Are they jealous of the Sheldon Adelson's of the world? Maybe they're trying to overcompensate for something?

Genting are the majority shareholders of Norwegian cruise line so they're not leaving Miami. But there must be a breaking point when they will give up on this unrealistic casino pursuit. It will likely come this legislature season if they don't get what they want. If and when it happens, hopefully they will cut their losses, sell the land, and we can continue to head in the direction most want, that of actual development in the downtown corridor.

http://www.huffingtonpost.com/jj-colagrande/genting-should-reevaluate_b_4633129.html

 

Genting: Laying Off LOW WAGE WORKERS, Exploiting Workers, “It shows how big a lie the jobs argument is.”

Genting is the financial backer of the Mashpee Wampanoag Tribe in Massachusetts.


After earning a raise in October last year, 175 employees of the buffet restaurant in Resorts World Casino in Queens, New York, were told on Monday that the eatery would close.

The Malaysian owned highest-grossing slot parlour in United States made a sudden decision to close down the restaurant, saying that it had been unprofitable from day one (it opened in 2011), reported the New York Times on Wednesday.

“If we allowed it to remain open, it would have ultimately had a negative impact,” the daily quoted Genting Group spokesman Kerri Lyon as saying.

“If that’s consistently losing money, then it becomes a drain on other parts of the business, and it becomes harder to sustain a business that you certainly want and the community wants to survive,” Lyon said.

The NYT report revealed that last year, a local arbitrator had ordered the casino management to pay employees a living wage, doubling the staff’s average pay cheques.

The ruling had affected more than 1,300 employees, mostly low-wage earners who found themselves propelled to the middle class as a result of the pay hike.

However, the sudden turnaround on Monday angered employees.

“They just threw us out like dogs. They just gave us a couple of dollars to shut up, and that’s it,” Mariano Cano, 45, a server at the buffet told NYT.

Cano’s pay was US$5 (RM16.30) an hour, including tips, but it shot up to US$12 (RM39.20) after the wage increase.

Sally Navarro, 25, a hostess with weekly earnings of US$707 (RM2310.40) after the revised wage, said the dismissal had left her stranded without money to pay bills and tuition for nursing school which she had planned to attend.
“A lot of us got hurt. I think they are being greedy,” she said.

The casino opened in October 2011 and had almost 1,800 employees before the recent dismissal.

According to Lyon, it posted revenues of US$696.5 million as of March last year.

The restaurant had just increased its prices prior to the closure, although Lyon said that the increase had nothing to do with the pay increase.

Employees said they were banking on a meeting between their union, New York Hotel Trades Council and officials from Genting Group to provide other jobs in the casino.

However, on Wednesday, employees turned in their uniforms and collected their last pay cheques.

“I’m very upset about this,” said John Turchiano, a union spokesman.

“We are doing everything possible to assist these workers.”

According to Turchiano, the dismissed workers would be given priority for new jobs that are available and they will receive an additional four months of health insurance coverage. Severance pay was also provided. – January 10, 2014.

http://www.themalaysianinsider.com/malaysia/article/genting-resort-restaurant-in-ny-shuts-down-leaving-175-jobless

175 jobless, yet Genting still eyes US gambling scene

The Genting Group continues to tout dominance in the US gambling scene, despite laying off 175 restaurant workers at its casino in New York yesterday.

The Financial Times reported today that the conglomerate had teamed up with three horseracing associations in Miami yesterday “with respect to a potential casino”.

The same day New York governor Andrew Cuomo laid out a timetable for attracting the state’s first casinos, in which Genting has been taking a keen interest.

The daily also reported that Genting received encouraging news last week on its involvement in what would be Massachusetts first casino.

The casino is a US$500 million (RM1.6 billion) gaming facility operated by the Mashpee Wampanoag tribe in partnership with Genting.

However, it is believed that the Malaysian company faces an array of challenges.

Florida is said to be a difficult prospect because only one operator is allowed to run a casino under a longstanding exclusivity arrangement with the state government.

“Given that legislators have twice rejected ‘destination resorts’ proposals that would allow the creation of at least two sizeable casino resorts, the regulatory approval remains the key hurdle,” said Kenanga Research.

Genting’s first foray into Miami in 2011 was marked by a string of painful events, when it announced the development of a US$3.8 billion (RM12.4 billion) resort on 30 acres of land.

While the Resorts World Omni hotel that was to form the core of that resort still exists, the wider project never materialised, partly due to opposition from rival existing hotel businesses, analysts told The Financial Times.

It was also reported that Genting sued the US federal government last year in an effort to continue using foreign labour for a Miami-based casino ship offering overnight gambling cruises in international waters.

A federal judge, however, ruled yesterday against Genting‘s request to overturn orders by immigration officials to either stop the cruises or hire US workers as crew, reported Miami Herald.

“The same company that promised to create 100,000 jobs is now suing the federal government to try and exploit foreign workers at subpar wages rather than hire Floridians,’’ said John Sowinski, the Orlando-based campaign consultant who heads the No Casinos advocacy group.

“It shows how big a lie the jobs argument is.” – January 11, 2014.

http://www.themalaysianinsider.com/malaysia/article/175-jobless-yet-genting-still-eyes-us-gambling-scene

GENTING to open slots-only casino in Miami Malaysia Chronicle PETALING JAYA - Genting Malaysia Bhd's has entered into a four-way partnership to open a slots-only casino at the Resorts World Omni Center in ... See all stories on this topic »
Inside Gaming: Genting's Agreement With Gulfstream, Fines in Philly ... PokerNews.com In this edition of Inside Gaming we take a look at Genting's deal in Florida, Harrah's Philadelphia's fine, the Gaming Commission Chairman in New ... See all stories on this topic »
175 jobless, yet Genting still eyes US gambling scene The Malaysian Insider The same day New York governor Andrew Cuomo laid out a timetable for attracting the state's first casinos, in which Genting has been taking a keen ... See all stories on this topic »	The Malaysian Insider
Critics question east coast gambling deal WZVN-TV Gambling giant Genting, Gulfstream Park and the horse industry may have mapped out a slot-machines happy ending, but the deal faces hurdles ... See all stories on this topic »
Critics question South Florida casino deal Business Journal Malaysian-based Genting Group is looking for a slots machine license with a permit owned by a non-profit linked to Gulfstream Park racing track, ... See all stories on this topic »
Slot Machines In Downtown Miami? WLRN The Genting Resort World, which owns the former site of the Miami Herald, hopes that by down-scaling to include only slot machines, it can increase ... See all stories on this topic »

Genting: We bombed in Miami; Jockeying for position in ... David McKee

It took almost no time at all for Genting Group's latest Miami proposal to draw heavy political criticism. State Sen. Gwen Margolis (D), who represents ...

Genting's plans under fire - Economy & Banking - MiamiHerald.com

Jumpstarting the economy was Genting's original promise, but now it's getting criticism over layoffs and hiring.

www.miamiherald.com/2014/.../gentings-plans-under-fire.htm...

 

 

Genting Quarterly Slides 53%

Genting is the Malaysian financial backer of the Mashpee Wampanoag Tribe hoping to suck discretionary income from the Taunton area.

Genting Quarterly Net Slides 53% With Lower Gaming Revenue

By Chong Pooi Koon on November 30, 2012

Genting Bhd. (GENT), the Malaysian company which controls casino operators in Southeast Asia, the U.S. and the U.K., said third-quarter profit fell 53 percent as gaming revenue and palm oil prices declined.

Net income dropped to 279.4 million ringgit ($92 million) in the three months ended Sept. 30, or 7.6 sen a share, from 597.2 million ringgit, or 16.2 sen, a year earlier, the company said in a filing to the Kuala Lumpur stock exchange yesterday. Revenue declined 14 percent to 4.2 billion ringgit.

The company posted its third consecutive quarterly drop in profit after its Singapore unit, which runs one of the island-state’s two gaming resorts, reported a 47 percent slump in net income. Genting Singapore Plc plans to open new attractions, including Marine Life Park, on Dec. 7 at its Resorts World Sentosa casino resort in the city-state to boost sales.

“The full opening of Resorts World Sentosa will allow the company to capitalize on sales and marketing initiatives that appeal to a wider base of affluent travelers and new markets,”Genting said in its exchange filing.

Genting Singapore, which opened its casino resort in the city-state at the start of 2010, reported gaming revenue dropped 20 percent in the third quarter as slower economic growth and tighter rules curbed spending by gamblers.

‘Volatile’ Singapore

Shares of Genting have declined 18 percent in Kuala Lumpur this year, compared with a 5.2 percent advance in the benchmark FTSE Bursa Malaysia KLCI Index. The stock climbed 2 percent to close at 9 ringgit in Kuala Lumpur, its biggest daily gain since Oct. 1.

Genting Malaysia Bhd. (GENM), a unit operating the only casino resort in the Southeast Asia nation, fell 2.3 percent to 3.42 ringgit. Genting Singapore advanced 2.4 percent to S$1.28 in Singapore trading.

“Genting’s dependency on the volatile Singapore market, which is currently facing some headwinds with the ever-changing government regulations, would be an obstacle to its share price performance in the medium term,” Hoe Lee Leng, an analyst at RHB Capital Bhd., wrote in a report today.

Genting last year got 40 percent of its total revenue from Singapore and another 40 percent from Malaysia, while the U.S. contributed 10 percent and the U.K. accounted for 6 percent, according to data compiled by Bloomberg.

The group said it lost money in the U.K during the quarter, while profit from its gaming business in Malaysia rose 2 percent, according to the statement.

Genting’s plantation division saw profit contributions drop 21 percent to 122.3 million ringgit, it said yesterday. Pretax profit from power generation more than doubled to 73.6 million ringgit.
To contact the reporter on this story: Chong Pooi Koon in Kuala Lumpur at pchong17@bloomberg.net

http://www.businessweek.com/news/2012-11-29/genting-quarterly-profit-slides-53-percent-with-lower-gaming-revenue

Sunday November 4, 2012

Don’t gamble our safety away

On The Beat
By Wong Chun Wai

 

 

Sunday November 4, 2012

Don’t gamble our safety away

On The Beat
By Wong Chun Wai

Malaysians rank as some of the biggest gamblers in the world and with the spike in crime, many believe there is a correlation between gambling and crime.

YOU don’t need to be a rocket scientist to know that our petty criminals – the small-time robbers and snatch thieves who give us lasting traumatic experiences – do not use their ill-gained loot to put food on the table for their families.

It is more likely that they will use their booty to buy drugs or pay off loan sharks for their escalating gambling debts. There is obviously a correlation between gambling and crime.

Nobody commits crime for entertainment or to make a point. That may happen in the movies but the reality is that most criminals do it to enrich themselves or simply to pay off debts.

Malaysians rank as some of the biggest gamblers in the world. In 2008, it was reported that authorities made 2,156 arrests and seized more than RM15mil in gambling assets. It was estimated then that illegal gambling raked in an astounding RM3.2bil in profits. One can only imagine what the figures would be today.

The New Straits Times reported that during the 2008 general election, gambling syndicates pocketed more than RM500mil from bets placed on the candidates. And Malaysians are not just interested in our own elections. They bet up to RM500mil on the last US presidential election which Barack Obama won. For good measure, the 2008 Olympics generated even more, with the figure reported at RM1bil.

The newspaper derived the figures from their own sources but no one should be surprised. It is now almost the end of 2012 and Obama is seeking re-election this week. We can imagine the kind of money that would be placed to bet on the outcome again. And come the Malaysian general election, you can be sure that the bets will also flow.

The Malay Mail reported that in 2010, police seized RM11.9mil in cash from illegal gambling syndicates when they conducted 270 operations during the 2010 World Cup.

The question is, if gambling is a highly regulated business, why is there so much underground gambling going on? What’s worse is it’s blatantly visible.

Something isn’t quite right, obviously. The underground gambling business has thrived simply because the operators know the authorities would never allow for more legitimate outlets, be they outlets or clubs. The Genting Casino is likely to be the first and last casino ever to be sanctioned in Malaysia.

The result is that illegal gambling dens, whether in the form of cyber cafes or online casinos, have mushroomed. In times of economic slowdown, gambling outlets actually perform better because desperate customers are driven to gamble for a supposedly quick fix to their financial problems.

Last week, The Star reported that illegal e-casinos, where computer gaming programmes and live games broadcast from the Philippines are used, continued to multiply in Selangor and Kuala Lumpur despite constant exposé by the media.

Even the few that had been raided and supposedly closed down had re-opened, according to my colleague who went undercover to investigate these places.
Starprobe revisited those illegal e-casinos which the team exposed in a report on Aug 2 last year and found that nothing has changed – they were still operating.

The Malaysian Anti-Corruption Commission should start its own probe and not wait for a formal report. Checks around Selangor and Kuala Lumpur have revealed that there are easily more than 2,000 outlets operating and some districts reportedly have more than 500. That does not include the thousands of massage parlours which the local authorities in Selangor seem to be doing nothing about.

Again, something does not seem to tally here. These outlets are known to the public and yet the police and council authorities appear to be turning a blind eye to them. Can we be faulted if we suspect there are rogue and corrupt elements here?

While the politicians are fearful of allowing regulated gaming because it would be religiously and politically wrong, illegal gambling seems to be flourishing. The consequences are a massive loss in revenue from unpaid taxes, and criminal elements are allowed to work alongside corrupt officials to benefit from such underground operations.

So, while legitimate gaming is controlled and tightly regulated, we see more of these illegal operations flourishing.

Are we seeing more crimes being committed these days because of such gambling activities?

Well, many non-governmental organisation activists, including the Malaysian Crime Prevention Federation vice-chairman Tan Sri Lee Lam Thye and MCA Public Services and Complaints Department head Datuk Seri Michael Chong, share the suspicion.

There is just too much gambling going on now, legitimate or otherwise, and if we feel insecure after plenty of stories of being victims to crime, Malaysians must continue to speak up and demand answers for things that are not right.

Don’t gamble our safety away.

http://thestar.com.my/columnists/story.asp?col=onthebeat&file=/2012/11/4/columnists/onthebeat/12271621&sec=On%20The%20Beat

Casino mogul Sheldon Adelson has pledged $100 million

From: Progressives United

Casino mogul Sheldon Adelson has pledged $100 million to help Mitt Romney's campaign while his company is under investigation. Don't let our politics be seduced by the dark side.

Genting: One to watch

One to watch because of Massachusetts connections --

Genting power assets sale a ludicrous deal

Harold Angus Sep 3, 2012

We all know that the independent power producer IPP deals are not favourable to Malaysians and especially to Tenaga Nasional Bhd, the national electricity company.

It seems the editor of Business Times was having an off day when they labelled the Genting power assets sale a 'sensible deal' (Business Times Aug 14, ‘Genting power assets sale a sensible deal')

This deal makes no sense from a logical or business perspective. After having consumers pay for the secret IPP deals, we now have to swallow this.

The most logical price to pay for this plant is book value, and only after a thorough plant survey, and maybe a little extra for some goodwill.

Within three years, this plant will be almost worthless in Malaysia unless they can negotiate a new IPP deal.

Is this one way of forever keeping the agreements a secret? Or could it be the testing of the mechanism to buy out all the other IPPs at ludicrous prices too?

So how is 1MDB going to manage this plant? I suppose they could create another Syabas-type model and pay the CEO something like RM400,000 a month?

Most likely there will be the usual upgrading and refurbishments resulting in another RM500 million in more dubious deals. The only economic transformation progression (ETP) for Malaysia in this deal is Malaysia going from indebtedness to Greek-like bankruptcy.

The headline is hilarious but misleading. This is not a sensible deal for Malaysians but it is certainly one sweetheart deal for Genting!

 

http://www.malaysiakini.com/letters/207813

Genting's Compliance

Genting is the financial backer of the Mashpee Wampanoag Tribe proposing a casino in Taunton, Massachusetts over which the Commonwealth has no control.

BUSINESS

July 13, 2012

Genting Singapore Hires Ex-Las Vegas Sands Executive

BY CHUN HAN WONG

SINGAPORE—Casino operator Genting Singapore PLC has hired an executive from rival Las Vegas Sands Corp. to join the compliance department at its Resorts World Sentosa casino resort, a person familiar with the situation said Friday.

Analysts see the move as part of the Singapore gaming company's bid to shore up its regulatory compliance.

Robin Thompson, former executive director for compliance at Las Vegas Sands' Singapore casino resort, Marina Bay Sands, has been appointed vice president of ...


http://online.wsj.com/article/SB10001424052702303919504577524461199447028.html



Report: Probe on Resorts World Sentosa casino levies
KUALA LUMPUR: The Singaporean Casino Regulatory Authority (CRA) is said to be probing Resorts World Sentosa (RWS) over alleged reimbursements of casino entry levies.

Singapore's TODAY newspaper had reported that the investigation which started almost a year ago allegedly revealed “hundreds of illegal reimbursements”.

“The probe is believed to have prompted the integrated resort to suspend several senior executives including one senior vice-president,” the report said.

Attempts to contact the CRA and RWS were futile, according to the newspaper while a CRA spokesperson said that the authority was unable to comment on the current investigations.

Under the Casino Control Act, operators are not allowed to reimburse the levies which are collected by the Singapore Totalisator Board for public, social or charitable purposes.

The newspaper reported that under the Casino Control Act, Singaporeans and permanent residents must pay S$100 (RM250) for a day-pass.

The casino operators are not allowed to reimburse the levies which are collected by the Singapore Totalisator Board for public, social or charitable purposes.

It pointed out that breaches could result in CRA taking disciplinary actions including the canceling or suspending the casino licence, varying the terms of the licence, issuing a letter of censure or imposing a financial penalty of up to S$1mil (RM2.5mil).

RWS is an indirect subsidiary of Genting Malaysia Bhd through Genting Singapore Plc. Genting's share price declined 20 sen at yesterday's close to RM9.60.

http://biz.thestar.com.my/news/story.asp?file=/2012/7/13/business/11654981&sec=business

Saturday May 26, 2012

Genting solid despite MTN issue

PETALING JAYA: Genting Bhd's latest proposal to issue medium-term notes (MTN) may result in a substantial increase in the group's net debt but analysts believe the position will remain manageable for the diversified conglomerate.

“The company is in a strong position, given the strength of its businesses,” an analyst said.
“We believe the bulk of proceeds from the issuance of the new debts will be diverted to new investments, which will only further strengthen the group. So, it could be a good thing.”
Genting Bhd on Thursday announced that its wholly-owned subsidiary, Genting Capital Bhd, had received Securities Commission's approval for the establishment of an MTN programme worth RM2bil.

An aerial view of Genting Highlands Resort. Genting Bhd has received Securities Commission’s approval for a RM2bil medium-term notes programme.

Genting said it would guarantee the notes to be issued by its unit pursuant to the proposed MTN programme, which has been assigned a long-term rating of AAA(s) by RAM Rating Services Bhd.
It said proceeds from the MTN would be used for operational expenses (opex) and to finance its subsidiaries' opex, capital expenditure (capex) and investment plans.

RHB Research, in its report, said Genting's net debt would likely rise to an estimated RM3.4bil at company level, assuming the full RM2bil of MTNs were issued and utilised. At group level, though, Genting would see its net debt rising to RM1.8bil compared with a net cash position of RM194mil as at end-2011.

This implied a net gearing of 10.4% at group level, which analysts at RHB Research said remained manageable.

UOB Kay Hian Research believed the issuance of the new MTNs was meant for Genting's investment ventures. It highlighted Genting's announcement of a proposal to construct and operate a 660-megawatt coal-fired power plant in Indonesia, which the research house assumed would incur a total investment of about RM2.6bil.

“Nevertheless, we are not ruling out other investment opportunities in which Genting could be involved, such as Genting Singapore plc's venture into new markets,” UOB Kay Hian Research said in its report.

AmResearch, in its report, said that among Genting's subsidiaries, gaming arms Genting Singapore and Genting Malaysia Bhd were the most aggressive in overseas expansion.
AmResearch noted that Genting Singapore was currently working on two projects and had recently raised S$2.3bil (RM5.68bil) in perpetual bonds.

“So far, Genting Malaysia has not carried out any major fund-raising exercise. The group relied on external borrowings to finance the development of Resorts World New York (RWNY).
“Going forward, however, Genting Malaysia would have to find ways to finance the US$4bil extension of RWNY if it successfully concludes negotiations with the Empire State Development Corp of New York on Nov 30,” it added.

Genting Malaysia had net cash of RM343mil as at financial year ended Dec 31, 2011.
AmResearch reckoned that Genting Plantations Bhd, on the other hand, would be able to finance its expansion in Indonesia without any cash calls.

http://biz.thestar.com.my/news/story.asp?file=/2012/5/26/business/11361347&sec=business

Genting solid despite MTN issue PETALING JAYA: Genting Bhd's latest proposal to issue medium-term notes ( MTN) may result in a substantial increase in the group's net debt but analysts ... thestar.com.my/news/story.asp?file=/2012/5/26/...sec...

RAM Ratings assigns and reaffirms top ratings for Genting Group ... Read 'RAM Ratings assigns and reaffirms top ratings for Genting Group' on Yahoo! News Malaysia. KUALA LUMPUR (May 24): RAM Ratings has reaffirmed the ... my.news.yahoo.com/ram-ratings-assigns-reaffirms-top-ratings...

Genting buying support in New York

Growing up in New York, I watched as OTB parlors were opened in poor neighborhoods and attracted drugs, violent crime, prostitution, drive-by shootings, muggings, car-jacking and destroyed communities.

The first new business to open in Aqueduct's neighborhood was a pawn shop, in recognition of the consequences of Gambling Addiction.

Politicians, blinded by campaign contributions, ego-stroking lobbyists and the Fools Gold of Gambling ignore the failure of nearby Atlantic City, the community devastation and the lessons of others. Do they believe themselves immune?

For government to win, its citizens must lose.

Government then becomes invested in the success of a predatory business creating problem gamblers, destroying families, destroying lives.

I-Team Exclusive: The Man Behind a Queens Casino Dream

Christian Goode has built casinos elsewhere and is now trying his luck in New York

By Chris Glorioso

Monday, Apr 30, 2012

The man who has helped build casinos from Oklahoma to West Virginia to western New York is now trying his luck in what is arguably the most lucrative gambling market outside of Las Vegas: New York City. Christian Goode talks to Chris Glorioso in this exclusive interview.

The man who has helped build casinos from Oklahoma to West Virginia to western New York is now trying his luck in what is arguably the most lucrative gambling market outside of Las Vegas: New York City.

"We supply entertainment that people demand," Christian Goode told NBC 4 New York in a recent exclusive I-Team interview as he strode through the Resorts World Casino, a recently renovated property in Ozone Park, Queens.

The casino already houses about 5,000 computerized slot machines known as video lottery terminals.

Goode is the senior vice president of Genting, a Malaysian casino firm that bought a $380 million license to operate those video lottery terminals.

Since then, Genting has invested another several hundred million dollars, renovating the building and preparing it for something much bigger: a possible amendment to the New York state constitution that would legalize table games like blackjack and poker.

"What we envision is building a world class resort," [Don't they all?] Goode said. "We've talked about and are working through plans to build the largest convention center in the U.S."

In January, Governor Cuomo announced an informal agreement with Genting and his support of the grand casino plan in his state of the state address.

For table games to become legal, the state legislature must approve a constitutional amendment this year and then the voters must approve the amendment in a referendum next year.

Goode insists Genting could build a convention center even if table games are voted down, but if they are legalized, he envisions a more rapid expansion driven partly by a steady influx of foreign visitors.

The casino's proximity to John F. Kennedy International Airport, he says, would make it an ideal place to attract air travelers. Goode has also talked up a dedicated rail link to Manhattan. "You would see this whole area built out with hotels," he said [Tourists? Where have we heard that before? Oh! Yes! Boston! Gambling doesn't bring tourists!]

If Goode sounds confident, he has good reason to be. Genting has hired one of the most imposing lobbying and public relations teams in New York history. They include a former top aide to Assembly Speaker Sheldon Silver, a former attorney for Senate Majority Leader Dean Skelos, Mayor Bloomberg's former campaign manager, and a long-time adviser to Cuomo.

"What this company has done is hire lobbyists who are close to every single powerful decision-maker who might be involved in the ultimate decision," said Susan Lerner, executive director of Common Cause NY, a nonprofit watchdog for money in politics.

Since 2010, the Malaysian casino company has spent $1.6 million on six lobbying contracts. One of the contracts, with a firm called Cordo & Company, LLC, was the fourth-biggest lobbying deal in the state, topping the Trial Lawyers Association and just behind a contract inked by the Bankers Association of NY.

The furious spending on lobbyists has drawn criticism from those who say Genting is trying to buy a change in the state constitution.

Goode says his firm is just doing what any smart company would in such a highly regulated industry. "We're not trying to buy a change," he said. "We're somewhat the new kids on the block. We want to make sure we're properly represented as, frankly, any company in the U.S. does."

So far, Genting's lobbying efforts appear to be paying dividends. It is hard to find elected leaders who oppose the plan. "I believe Genting is a pioneer in many ways," said Erich Ulrich, a Republican city councilman who represents Ozone Park.

"Genting has answered every one of the concerns of my residents," said Democrat State Sen. Joseph Addabbo, who also represents Ozone Park. Campaign finance records show Yonkers Mayor Mike Spano, who is also a former state assemblyman, has taken $5,750 in campaign cash from Genting and one of its lobbyists.

At one point, Spano's brother, Nick, was hired to lobby on behalf of the casino company.

Mayor Spano insists Genting has not influenced his support for a table gaming amendment. "Because I support casino gaming," he said. "As a matter of fact, that was always a proposal of mine. Something I supported and touted, that we should have full-blown casinos, at least at the raceway sites." From political offices to the corners of Queens, Genting is also spending money to influence voters directly.

At nearly every meeting of Community Board 10, a Genting public relations representative stands up to speak.

During a recent meeting, he was touting the $135 million in revenue those video lottery terminals have provided for the state's education fund. [ignoring that it's $$$ being sucked out of a poor community!]

"They meet with us, they talk to us. They answer our concerns," said Community Board 10 President Betty Braton. [They stroke your ego!]

Despite the promise of additional tax revenue for schools, past efforts to legalize table games have been vigorously opposed by religious groups and neighbors worried about organized crime.

Genting is also mounting a television and radio campaign to beat back those critics.

Lerner, of Common Cause, fears the heavy spending could overwhelm smaller voices in the gambling debate. "What chance does an ordinary resident of Ozone Park have to raise $100- or $200 million to be on a par with the advertising that Genting is going to flood New York airwaves with if there's a constitutional amendment to permit gambling in our state?" she said.

Genting bears watching

The Malaysian investor, Genting, has funded the Mashpee Wampanoags' recent expensive adventures in Massachusetts and their action below bears note.

This is speculation --
An alternate theory is that the company is simply tightening its belt in light of diminished revenues at many of its worldwide properties. Last summer, the company reported big revenue drops at its Singapore and UK based operations.

Rumors have widely circulated about Genting's desire the dump the Mashpee Wampoags.

Additional information --

Mashpee tribe unveils $500m casino plan - Featured Articles From ... TAUNTON - In the latest turn in the state's high-stakes gambling scrum, the Mashpee Wampanoag tribe unveiled details of its proposed casino Thursday, ...articles.boston.com/.../31403383_1_mashpee-wampanoag-trib...

Mashpee tribe unveils Taunton casino plan | Mobile ... TAUNTON — The Mashpee Wampanoag unveiled a casino proposal Thursday that would be about the half the size of Mohegan Sun, one of two Indian casino ...m.capecodonline.com/apps/pbcs.dll/article?AID=/...

Reel Wamps


Genting Drops US Affiliates

04/27/2012 by Brian K. Trembath in Online Casino News

Genting Affiliates is dropping its US based affiliates, becoming the second company in just a month to leave American partners in the dust. The company behind gaming brands; including Genting Casino, Genting Poker, Circus Casino, and Circus Poker made the announcement in an e-mail sent to partners earlier this week.


Unlike Expekt, the other high profile company dropping US partners, Genting officials have said that they will, in fact, honor their lifetime revenue agreements to their former partners. This stands in stark contrast to the actions of Expekt, which seems to have shuttered its affiliate program earlier in the month by keeping players but dumping partners (note: this has yet to be confirmed or denied by Expekt).


Though company officials weren’t specific about why they’re shutting down, a Genting representative posting on the CAP Forum to assure affiliates that payments would continue. “We will be leaving all US affiliate accounts open and payments on players sent already will continue as long as those players continue to play in our casinos. Be assured that all commissions will continue on your existing player base, lifetime rev share still means lifetime rev share,” GentingAL posted yesterday.


How to Deal with Closed Affiliate Programs


Why Shut Down US Partners?
Genting, it should be noted, is no fly-by-night operation. They’re the force behind some of Asia’s biggest land-based casinos including Resorts World Malaysia. Some forum posters speculated that the company is dropping affiliate partners in countries where it has land-based operations.


The company did recently buy up $500 million worth of property in Miami in the hopes of one day building a huge casino complex there. But despite their purchase, casino gambling is not yet legal in the state of Florida.


An alternate theory is that the company is simply tightening its belt in light of diminished revenues at many of its worldwide properties. Last summer, the company reported big revenue drops at its Singapore and UK based operations.

Finally
Genting should be commended for its handling of this situation. Too often we see affiliate programs take a very cavalier attitude towards their partners and their commitments to lifetime revenues. It’s hardly a perfect situation for affiliates who have sent players to Genting, but it’s about as good as they could hope for.

Genting offering more bonds

Singapore News
Genting S'pore to offer up to S$500m worth of perpetual securities
By Thomas Cho

SINGAPORE: Integrated resort operator Genting Singapore will offer a second issue of perpetual securities worth some S$500 million.

At a media briefing on Monday, Genting's Chief Financial Officer Lee Shi Ruh said the second tranche is targetted at retail investors after Genting received an overwhelming response to its first S$1.8 billion offering in March.

Genting has indicated that the proceeds raised could be used to expand into Japan and South Korea.

Magdalene Choong, investment analyst, Phillip Capital, said: "If I am a Genting investor, I will actually sell the shares and buy the bonds instead.

"If you based on the previous dividend payout, it is about 0.63 per cent of dividend yield and the company has no dividend policy but on the other hand, this preferred security is offering about 5 per cent (per) annum."

Genting will sell up to S$500 million in perpetual securities, with half of the offering set aside for retail investors, some S$50 million to be offered to directors and employees, and the balance S$200 million to institutional and other investors.

There is also an option to issue another S$200 million in the event of over subscription.

Carey Wong, senior research manager, OCBC Research, said: "We think it is pretty positive because that will increase its growing cash hoard from its expansion of business. They have been talking about going into overseas markets like Japan and Korea."

Fitch Ratings is maintaining a Triple BBB despite the introduction of a second tranche.

Genting will need to foot at least almost S$118 million in interest payment per annum for the perpetual securities.

But analysts think Genting must have a degree of confidence to clinch projects at an even higher rate of return, otherwise they will be doing injustice to their shareholders.

- CNA/cc/ck

Genting issues more bonds, this time for retail investors
By Jonathan Kwok
Retail investors will finally get a bite of Genting Singapore's much publicised perpetual bond issue, after being left out of the first issue in March.

The integrated resort operator had raised $1.8 billion in a highly successful exercise in March but the minimum subscription size was $250,000, leading to some rumblings that small-time players were being left out in the cold.

But in its latest issue, announced by Genting Singapore on Monday, the subscription starts at $5,000, and investors will be able to subscribe in lots of $1,000 above that. The company hopes to raise $500 million from this exercise.

'This round is really for the retail investors, the man on the street,' said Genting Singapore's chief financial officer Lee Shi Ruh in a briefing. 'The purpose of this is really to tap on a different pool of investors.'

Genting Singapore to issue S$500m in perpetuals
SINGAPORE: Casino operator Genting Singapore PLC is planning a second issue of perpetual
securities worth about US$397 million and could use the proceeds to expand into Japan and South Korea, a senior executive said today.

Genting Singapore, a unit of Malaysian group Genting Bhd, plans to sell S$500 million (US$397 million) in perpetual subordinated capital securities, a hybrid of bonds and equities, to mostly retail investors.

This follows its S$1.8 billion issue of perpetual securities last month that was sold mainly to institutional and private banking investors.

“We are well positioned for opportunities such as those in Japan and Korea,” chief financial officer Lee Shi Ruh said at a media briefing.

Casinos are banned in Japan but a group of lawmakers is pushing for a bill that could legalise them. In South Korea, only one of its casinos is open to citizens and it is located in a rural area far from major cities.

Lee said the potential liberalisation of Japan and South Korea’s gaming industries could follow a similar path to Singapore, which legalised casinos in 2005. The two integrated casino resorts in Singapore have helped boost its tourism industry.

If Genting Singapore, which runs the Resorts World Singapore casino, invests in Japan or South Korea, the projects would most likely be in new “greenfield” developments rather than acquisitions, Lee said.

The company is open to acquisitions in other markets, Lee said, but she declined to name them.

Genting Singapore’s latest issue will pay an annual coupon of 5.125% until October 2022 and 6.125% after that, with the company having an option to redeem the securities in 2017.

Issuing perpetual securities has been growing in popularity in Asia, due partly to favourable accounting practices that could translate into lower leverage ratios for companies.

DBS is the sole global coordinator for the offering. DBS and Oversea-Chinese Banking Corp are the joint lead managers and book runners.

- Reuters

Genting Singapore to issue $397mil in perpetuals

Genting Singapore to issue US$397 mln in perpetuals