Genting Berhard plans complete takeover of Genting Malaysia Berhad but Moody’s warns of risk
Debt-to-EBITDA ratio could increase by around 5.1 times
Genting Berhad wants to snap all the shares that it doesn’t own in its Malaysia Berhad subsidiary for RM6.74bn ($1.6bn) with completion expected by the fourth quarter of 2025.
The company said: “With control clearly established, Genting will be better placed to lend its financial strength and network to support this major development.”
Following the news, Moody’s Ratings downgraded the ratings of the company saying the deal would test the group’s financial strength.
“The review for downgrade reflects our expectation that Genting Berhad’s credit quality will weaken materially, depending on the level of acceptance of its proposed takeover offer for Genting Malaysia, which will be largely debt-funded,” said Anthony Prayugo, a Moody’s Ratings Analyst. “Genting Berhad’s credit metrics are already weak and the proposed transaction would delay any meaningful deleveraging.”
The company’s adjusted debt-to-EBITDA ratio could increase by around 5.1 times in 2025 if the takeover is completed as planned.
