How much has Genting Malaysia invested in Empire Resorts to date?

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Genting Malaysia's Total Investment in Empire Resorts Reaches RM1.5 Billion

Genting Malaysia Bhd (GENM) has made a substantial commitment to its associate, Empire Resorts Inc (ER), with its total investment to date reaching RM1.5 billion (US$357.5 million). This figure includes a recent subscription for up to US$150 million (RM625 million) in ER's preference shares, designated as Series L. The company's ongoing support for ER underscores its strategic interest in the US-based associate, despite ER's current financial performance.
Recent Equity Injection into Empire Resorts

GENM announced its intention to subscribe for up to US$150 million (RM625 million) in Series L preference shares of Empire Resorts Inc. This represents a significant capital infusion into the 49 per cent-owned associate. The completion of this specific injection exercise is anticipated by the end of 2020, signalling a continued financial engagement with ER.
Cumulative Investment in Empire Resorts

The recent subscription for preference shares brings Genting Malaysia's cumulative investment in Empire Resorts to a total of RM1.5 billion, equivalent to US$357.5 million. This substantial financial backing reflects a long-term commitment from GENM towards its associate's operations and development.
Analyst Views on the Investment

Analysts at CGS-CIMB have viewed this latest equity injection as a negative development, projecting that ER will likely remain loss-making for the next five years. The firm has adjusted its financial year 2021-2022 earnings per share forecasts for GENM downwards by 2.9 per cent to 5.5 per cent, anticipating an increase in GENM's share of ER's losses. Consequently, CGS-CIMB has also reduced its sum-of-parts target price for GENM by 3.6 per cent to RM2.70.
Potential for Empire Resorts' Future Improvement

Despite current financial challenges, there are potential avenues for Empire Resorts' prospects to improve. These include the successful development of an electronic games machine facility in Orange County, the extraction of greater synergies with Resorts World New York City, and the potential award of a sports betting licence in New York state. These developments could positively impact ER's financial trajectory.

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How much has Genting Malaysia invested in Empire Resorts to date?

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