Genting Malaysia said the deal will see Empire Resorts sell key non-casino properties—including the 332-room Resorts World Catskills (RWC) and the 99-room Alder Hotel, a 18-hole Monster golf course, the 2,500-seat RWC Epicenter, and restaurants—to a local development body, Sullivan County Resort Facilities Local Development Corporation (SCRFLDC), which will run them as public assets.
The court agreed with Genting Malaysia’s position that the complaint in its initial form was “merely a shareholders’ dispute” in a decision on July 1, and that RAV Bahamas' current allegations are “baseless and without merit”, according to Genting Malaysia in an exchange filing on Monday.
The bid was submitted on June 27 in response to the New York State Gaming Commission’s request for applications for up to three commercial casinos in downstate New York, where its Resorts World New York City (RWNYC) is located, Genting Malaysia said in an exchange filing.
The acquisition will turn Empire Resorts, the operator of Resorts World Catskills, Resorts World Hudson Valley, and Resorts World Bet in New York, from being GENM's 49%-owned associate to a fully-owned subsidiary.
The transaction, announced by Genting Malaysia on Friday via a bourse filing, will result in Empire Resorts becoming an indirect wholly owned subsidiary of Genting Malaysia, via Genting ER Ltd.
“Genting Americas is of the view that the complaint is baseless and totally without merit and will vigorously defend against the complaint,” GenM said.
"Genting Malaysia wishes to state that neither the company nor Lim was involved in any such discussions or meetings, and the claims made were untrue," it said in a statement.
“Revenue in 2022 and 1H2023 (first half of 2023) in Malaysia (Resorts World Genting), which contributes over 60% of Genting Malaysia’s consolidated figure, was lower than our expectations, affected by factors such as heavy rainfall at the turn of 2023 and a landslide in late 2022, hindering access to the resort.
Jorge Perez, the chief executive officer of Related Group, one of Miami’s largest builders, told the WSJ that he “passed” on the deal because Genting wanted the whole acquisition price upfront rather than in stages.
On Thursday (June 22) morning, GenM disclosed that the purchaser, Smart Miami City LLC, had decided to end its current bid after requesting an extension of the exclusivity period and amendments to the commercial terms of the Sale and Purchase Agreement — requests that GenM chose not to grant.
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