PETALING JAYA: Genting Malaysia Bhd (GenM) is seeking a renewal of the shareholders’ mandate for another year for its indirect unit, Resorts World Ltd, to sell its 16.87% stake in cruise operator Genting Hong Kong Ltd (GenHK).
GenM told Bursa Malaysia yesterday that it was seeking the renewal as the validity period for the current one-year disposal mandate would expire on July 1.
The new proposed mandate would be valid for a period of one year from the date of approval of GenM’s non-interested shareholders at an EGM to be convened. The minimum disposal price per share this time, however, would be 29 US cents (RM1.14), compared with the 33 US cents (RM1.29) proposed under the original mandate.
GenM said after receiving the approval for the current disposal mandate, Resorts World had engaged brokers to advise and assist on the placement of the disposal shares to potential investors.
It was unable to dispose of any GenHK shares due to, among others, the share price being traded below the minimum disposal price of 33 US cents for most of the time since the approval was secured in July 2015.
At the EGM to seek GenM shareholders’ mandate on July 2, 2015, non-interested shareholders owning 24.16% of its shares voted against giving the mandate. According to a report, some shareholders deemed the disposal price as too low. GenHK, majority-controlled by chairman Tan Sri Lim Kok Thay, operates Star Cruises, Crystal Cruises, Dream Cruises (a recently-launched Asia-based premium cruise brand) and Resorts World Manila.