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GENTING (3182) GENTING BHD to gain maiden exposure to Blumont via Landmarks asset sale

KUALA LUMPUR (Oct 4): Genting Bhd via 24.98%-owned associate Landmarks Bhd is expected to gain its maiden exposure to Singapore-listed Blumont Group Ltd after Landmarks proposed to sell its Indonesian hospitality assets to Blumont in an estimated S$63.4 million (RM195.1 million) all-share deal which will see Landmarks emerging as a substantial shareholder with a 29.32% stake in Blumont.

Calculations by theedgemarkets.com show that casino and hotel operator Genting will own an effective stake of 7.32% in sterilisation specialist Blumont based on Genting’s 24.98% stake in Landmarks and Landmarks' potential 29.32% stake in Blumont upon completion of the asset sale which will be paid via the issuance of 12.68 billion new shares in Blumont.

According to Genting and Landmarks’ latest annual reports, Genting via 100%-owned subsidiary Phoenix Spectrum Sdn Bhd owned 24.98% comprising 145.69 million shares in Landmarks as at April 30, 2021.

Landmarks said in a Bursa Malaysia filing on Friday (Oct 1, 2021) Landmarks is selling to Blumont stakes in several companies which are involved in operations of Chill Cove, a 52- hectare waterfront resort city located within Treasure Bay Bintan, a 338-hectare tourism destination developed by Landmarks and its subsidiaries on the Indonesian island of Bintan.

According to Landmarks, its wholly-owned subsidiary Tiara Gateway Pte Ltd (TGPL) had on Friday entered into two conditional share sale agreements with Blumont.

The first conditional share sale agreement involves the proposed disposal of TGPL’s 49% equity interest in Mendol Investments Pte Ltd to Blumont, Landmarks said.

Landmarks said the other conditional share sale agreement involves the planned stake sales in four companies to Blumont.

The share sale agreement involves the proposed disposal of Landmarks’ 100% stake in Hinako Investments Pte Ltd besides the sale of a 60% stake each in Landmarks’ wholly-owned subsidiaries Prime Holdings Pte Ltd, Enggano Investments Pte Ltd and Mesawak Investments Pte Ltd.

Blumont said in its filing with the Singapore Exchange on Friday that following completion of the transactions, the enlarged share capital of Blumont will comprise 43.24 billion shares compared to the existing 27.57 billion units.

"The company (Blumont) has appointed Xandar Capital Pte Ltd as the independent financial adviser (IFA) to provide an opinion letter as to whether the acquisition, as an interested person transaction, is on normal commercial terms and is not prejudicial to the interests of the company and its minority shareholders,” Blumont said.

According to Landmarks’ Bursa filing, Mark Wee Liang Yee, who is executive deputy chairman, chief executive officer and substantial shareholder of Landmarks, is also the controlling shareholder of Blumont.

Landmarks said Wee owns a direct 51.37% stake in Blumont.

At Bursa’s 12:30pm break on Monday, Genting’s share price gained two sen or 0.4% to RM4.99 for a market capitalisation of about RM19.21 billion based on the company’s 3.85 billion issued shares.

Landmark’s share price settled up 0.5 sen or 1.33% at 38 sen, which values the company at about RM354.73 million based on its 670.34 million issued shares.


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