Resorts In Play

A significant moment on selling down Star Cruises to CMY. This really puts Resorts in play for the next 6 months. I still suspect Stanley Ho is eying some sort of participation with Genting or Resorts. Briefly, the sell down to CMY will see almost all research houses booting their target price for Resorts from RM4.10-4.30 to RM4.80-RM5.00. Thats because the sale will remove part of the drag on earnings growth.

All up, cash available for dividend, should they decide to do so, can amount to a dividend of 60 sen per share. CMY did not make his billions by buying dormant money losing stakes.

CMY has been a very big buyer of Resorts for the last 2 weeks. Resorts can and should distribute its 6% holdings in Genting International to Resorts shareholders. This way it eliminates direct links with Genting International (i.e. Singapore authorities). Following the distribution, Resorts could be better placed to consider any deals with Stanley Ho. The 6% value in Genting International is worth more than RM600m in value.


zentrader said…
Dear Dali,

Is it possible the whole Genting Group is under hostile takeover target? I think CMY is trying to defend the takeover war for Tan Sri Lim Kok Thay? Not sure the hostile takeover is from outside the Lim family or inside Lim family? I think CMY will make big money again this time. :)
doraiddd said…
"CMY did not make his billions by buying dormant money losing stakes."

wat abt time engineering? and selling his long-stuck ktebraus at 70 sen? sorry, i cldnt resist.....

there will not be a special dividend from resorts. Now they shld be looking to unravel and restructure the ownership of landmarks. (even perhaps a GO???)
They used the wrong vehicle to buy it and then realised it shld come under resorts afterall.
It is bintan and thats too close for comfort to the IR.
cmy is a middle man just true to his profession ie making quick bucks out of quick deals. Afterall one can trace his roots to brokeraging. Im sure cmy did not make billions if not he would be ranked among the richest in msia. my opinion is that he is fronting for someone for a certain amount of fee.
Salvatore_Dali said…

actually cmy stood to make a huge sum if both govt agreed to the s&p of time, but was thwarted at the last minute... actually he bought tebrau early, less than 60 sen ... but itchy backside took his helicopter to survey Tebrau's landbank, which was swampy... he went back and sold at 70 sen...

the postulation that resorts would be used to absorb landmarks make a lot of sense owing to the Sentosa IR thingee, agreed.

as for hellthy correction, I told on of fellow analysts that CMY is acting as a surrogate buyer for Stanley, to involve Stanley now would be too sensitive... wait till the sentosa is way underway, then ..

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