Bloomberg and The Straits Times recently reported that MGM Resorts has approached Genting Singapore regarding a potential deal. While no agreement has been reached, other parties have also begun considering a takeover. As a result of these reports, the stock of Genting Singapore experienced a significant increase of up to 9.3% during morning trading on July 15th, the largest jump in nearly two years. However, Genting Singapore called for a trading halt at 1pm, prompting the Singapore Exchange to question the operator about the unusual price movements.
The Singapore Exchange inquired whether Genting Singapore had any knowledge of information that may have caused the surge in trading activity. It highlighted events such as discussions, negotiations, joint ventures, mergers, acquisitions, or significant asset transactions as potential factors leading to the price rise. In response, Genting Singapore stated that it was not aware of any ongoing discussions related to a potential transaction. However, it did reveal that an unsolicited approach regarding the holding of its indirect controlling shareholder, Tan Sri Lim Kok Thay, had been received but was not pursued.
Genting Singapore emphasized that it was not aware of any undisclosed information concerning the company, subsidiaries, or associated firms that could explain the trading activity on July 15th. The operator affirmed its commitment to abide by Singapore Exchange rules and assured that any necessary disclosures would be made at the appropriate time.
