By Yi Wei Wong


Shares of Genting Singapore Ltd. fell after its controlling shareholder said he isn't pursuing an unsolicited approach for the integrated-resort operator.

The company's shares fell by as much as 6.2% to 0.76 Singapore dollars (US$0.54) on Monday after it lifted a trading halt.

Genting Singapore on Monday said it is aware of reports that the casino operator's controlling shareholder was approached by MGM Resorts International regarding its interest in a deal.

Genting Singapore said it isn't aware of any discussions regarding a potential transaction.

Controlling shareholder Lim Kok Thay has since told Genting Singapore that its parent company, Genting Bhd., had received an unsolicited approach for its shareholding in the Singapore unit and won't be pursuing the offer.

Shares of Genting Singapore rose following the reports, leading the Singapore Exchange to query the company's "unusual share-price movements". The stock was 7.3% higher on Friday before trading was halted.

Citi analysts George Choi and Ryan Cheung said in a note that the casino operator's decision to ignore the unsolicited offer was unsurprising, as its Singapore unit remains an important earnings contributor to the company.

Genting Bhd. is "just beginning to enjoy the benefits from the lifting of travel restrictions," Citi said. The casino operator also doesn't have many debt obligations in the near term, the analysts noted.

Genting Singapore was the single-largest earnings contributor to Genting Bhd. in the first quarter, accounting for about 31% of its Ebitda during the period, Citi says. It has a buy rating and S$1.01 target price on Genting Singapore.


Write to Yi Wei Wong at yiwei.wong@wsj.com


(END) Dow Jones Newswires

07-17-22 2252ET