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Malaysia – Nomura believes investors will be ‘relieved’ Genting’s Macau dream didn’t happen

By - 29 November 2022

Analytical group Nomura believes investors in Genting Malaysia will ‘likely feel relieved’ that the operator was overlooked in the tender process for one of Macau’s six gaming licences.

Nomura’s Tushar Mohata and Alpa Aggarwal said: “There were two concerns if Genting Malaysia had won the bid; the risk of a low ROIC investment in Macau given lack of clarity on the residual size of the Macau gaming industry once China emerges from zero-COVID Strategy, after years of crackdown on the sector by Beijing; and funding risk for a large capex commitment and resulting balance sheet pressure on Genting Malaysia to develop a new Macau resort, and resulting negative FCF in the coming years.”

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