By Amanda Lee


Genting Bhd. shares surrendered early gains and closed lower Tuesday, after the conglomerate's bid to take listed affiliate Genting Malaysia private was unsuccessful.

Shares of Genting closed 2.1% lower after rising as much as 3.9% intraday to 3.49 ringgit, equivalent to $0.84, while Genting Malaysia closed 4.3% lower after gaining as much as 1.7% to 2.39 ringgit.

In October, Genting offered 2.35 ringgit a share for the 50.64% stake, or 2.9 billion shares, that it doesn't already hold in Genting Malaysia.

Genting raised its stake in Genting Malaysia to 73.13% as of the closure of the take-private offer on Dec. 1, according to a filing Monday. Genting needs to hold a 75% stake in Genting Malaysia to delist it.

"Given the absence of any follow-up move to raise its stake beyond 73%, we believe [Genting] is likely comfortable with its current shareholding in [Genting Malaysia] and is unlikely to pursue further acquisitions in the near term," DBS Group Research analysts said in a note.

Separately, Genting Malaysia's wholly owned Genting New York LLC subsidiary, which operates Resorts World New York City, received the New York Gaming Facility Location Board's nod to operate a casino, according to a statement on Monday. The New York Gaming Commission still must review Genting's finances before officially awarding the license.

Genting Malaysia placed a bid for a downstate New York casino license in June, detailing a $5.5 billion plan to convert Resorts World New York City into a full-fledged casino.

Analysts said the successful casino bid bodes well for Genting Malaysia's earnings outlook.

Genting Malaysia's net profit generated by its expansion is estimated to "peak at a whopping" 1.93 billion ringgit in 2030, said Maybank Investment Bank analyst Yin Shao Yang in a note.


Write to Amanda Lee at amanda.lee@wsj.com


(END) Dow Jones Newswires

12-02-25 0516ET