Genting likely to use bond proceeds for overseas power investments
Tuesday, December 9 2003 - 12:45 AM WIB
Analysts expect the bulk of the proceeds may go towards acquiring shares in Australia?s Loy Yang Power and Indonesia?s PT Jawa Power.
One analyst said Genting has announced its interest to buy shares in these two power companies. She said the progress of these deals has also been made public and that they are in the final stage of completion.
?I think Genting is currently waiting to get the green light from the relevant authorities for these proposed deals.
?The bonds will definitely help the group to raise cash for this move,? she told Business Times in Kuala Lumpur yesterday.
Another analyst said Genting is in the midst of diversifying its focus from gaming to other potential business areas.
He said it makes business sense for the group to reduce its concentration on the gaming sector as it would be hard to predict the Government?s policy on the sector in the future.
?I feel that the group is aware of the risk of placing all the eggs into one basket and is currently looking for other potential businesses to focus on.
?And based on the various announcements made by the group, I think that their new investment ventures would focus on the power business,? he added.
Genting had earlier announced that the proposed bond issue, to be made via subsidiary Prime Venture (Labuan) Ltd (PVL), was to fund the group?s overseas investments.
The notes, which are exchangeable into existing Resorts World Bhd shares of 50 sen each held by Genting, would be offered to non-residents of Malaysia by PVL through the book-building process.
In an announcement to the Kuala Lumpur Stock Exchange (KLSE) yesterday, Commerce International Merchant Bankers Bhd said the book-building process has been completed and the notes fully placed out to investors. The notes will be listed on the Luxembourg Stock Exchange, with a secondary listing on the Labuan International Financial Exchange.(*)