Empire Resorts investment could be negative for Genting Malaysia, says CGS-CIMB

KUALA LUMPUR: With anticipated losses in Empire Resorts Inc over the next five years, CGS-CIMB Research said it is negative over Genting Malaysia Bhd's plans to purchase the gaming company' entire 1,510 Series F Convertible Preferred Stock from Kien Huat Realty Sdn Bhd (KHR).

Genting Malaysia said in a filing with Bursa Malaysia the acquisition for a total consideration of US$100mil (RM438.5mil) will be funded via internally generated funds and will bring its total investment in Empire Resorts from US$524.4mil to US$624.4mil to date.