The offer price is also 14% above the average target price of RM2.06 set by analysts covering the stock and close to 10% above its last traded price of RM2.14 before the offer was made.
Minority shareholders of Genting Malaysia Bhd (GENM) are now before the betting table. They face two options: exit the company at RM2.35 (72 cents) per share or reject a voluntary general offer from parent company Genting Bhd and continue rolling the dice on what lies ahead.
For the risk-averse, the likely decision would be to take the offer since analysts have projected a subdued earnings outlook and increased debt from the company’s capital-intensive activities, which could potentially crimp dividend payouts.
