PETALING JAYA: Shares of Genting Malaysia Bhd slumped as much as 14.7% to a low of RM3.08 this morning on concerns over the acquisition of a 49% stake in loss-making Empire Resorts Inc for RM846 million.
At the midday break, the stock slipped 41 sen or 11.4% to RM3.20 on 209 million shares done.
Hong Leong Research said it is negative on the news in the short term as the acquisition price implies a premium to the book value (1.5 times 2018 price-to-book value) despite Empire still recording losses.
It also downgraded Genting Malaysia to “hold” with a lower target price of RM3.79 from M4.21 previously.
source https://www.thesundaily.my/business/genting-malaysia-tumbles-14-7-in-early-trade-on-loss-making-deal-CY1230730
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