Genting Group to Give Up on Canada
The Ontario Lottery and Gaming Corporation’s decision to choose Great Canadian Gaming and Brookfield Business partners for a Canadian casino concession, that will see the two operate a line of new casinos in the greater Toronto area for the next 22 years, has seen Genting Group fail in another attempt to tap in the Canadian gambling market.
Genting Fails in Another Bid to Enter Canadian Market
As reported earlier, Great Canadian Group and Brookfield will start with OLGC facilities in Woodbine and Ajax Downs before expanding their operation to the Great Blue Hotel Casino, which combined offer more than 4,000 machines and 60 game tables.
Genting Group was one of the bidders for this lucrative deal that would have seen this Malaysian gambling operator once again fail in its attempt to enter the Canadian market.
Now that the tender has been officially awarded to another firm, Genting Casinos appear to giving up on hopes regarding the Canadian territory.
Genting Shares Expected to Drop
UOB Kay Hian Research, the Malaysian research company interested in buying the Genting Group shares could benefit the most following Genting’s rejection into Canada.
Genting is currently trading at 7.8 times 12-month EV/EBIDTA, compared to Genting Malaysia’s 12.2.
Kay Hian Research believes Genting Group shares are likely to suffer a change in current growing trend. A drop in current share value is expected to coincide with the US Department of Interior’s due date for the Mashpee Wampanoag Tribe appeal on the proposed First Light Resort & Casino build is nearing closer.
The current deadline stands at 17 October when the US Department of Interior is expected to decide on whether the tribe qualified for land where the aforementioned casino is supposed to be built.
Kay Hian Research is thus considering an offer for Genting Bhd, saying it would prefer to purchase the Genting Group and not its Malasyian parent – Genting Malaysia.