KUALA LUMPUR: The Genting Group has failed in its bid to secure a casino concession in Canada, according to UOB Kay Hian Malaysia Research.
The research house said on Friday the Ontario Lottery and Gaming Corp. (OLG, an authority of Canada’s Ontario province) has selected Great Canadian Gaming Corp. and Brookfield Business Partners LP to run its casinos in the Greater Toronto Area (GTA).
Quoting a news report, the research house said that under the deal, Great Canadian and Brookfield would acquire OLG Slots at Woodbine, OLG Slots at Ajax Downs and the Great Blue Heron Casino located in the Mississaugas of Scugog Island First Nation.
The two companies would also have the exclusive right to operate the casinos for a minimum of 22 years. The three locations have more than 4,000 slot machines and 60 table games.
UOB Kay Hian Research, in its comments, said the Genting Group was reportedly one of the bidders for GTA gaming concession.
“Following this latest development, it implies that Genting Group would have lost the opportunity to venture into Canadian territory,” it said.
The research house said that in July the media reported that Genting Group was one of the three companies – together with Canada’s Brookfield Asset Management and American-based Caesars Entertainment -- in the final round of the bidding for 22-year concession to operate gambling facilities for the three locations.
UOB Kay Hian Research said it continued to maintain its Buy on Genting Bhd
and Hold on Genting Malaysia.
“We prefer Genting to Genting Malaysia as the parent company’s valuation lags behind its subsidiaries’, and, it is in the best position to capitalise on Genting Group’s catalysts.
“Genting currently trades at 7.8 times 12-month EV/EBITDA, vs Genting Malaysia’s 12.2 times. We reckon that GENM’s share price could retrace from its recent upward momentum as we head closer to the US Department of Interior’s (DOI) due date for the Mashpee Wampanoag Tribe and the plaintiffs (local Taunton residents) to submit supporting materials and to reply to opposing submissions by Oct 17,” it said.
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