Gen Msia's Manila ops listing positive, said RHB Research

KUALA LUMPUR: Genting Malaysia's possibility of listing its Manila operations would be positive for the gaming operator said RHB Research.
In a report on Thursday, it said Reuters reported that Travellers International Hotel Group,
which owns and operates Genting's Resorts World Manila, has plans to
embark on an IPO valued at up to US$500 million in Manila by third
quarter 2013
Travellers International Hotel Group is Genting Hong
Kong's 50%-owned joint venture that owns and manages Resorts World
Manila (RWM). Genting Malaysia (GENM) holds a 18.4% stake in Genting
Hong Kong.
“In view of the Travellers group's capital commitments
in the next five years, we would not be entirely surprised if the
potential IPO materializes. Based on our back-of-the envelope
calculations, the group could potentially garner a market cap of close
to US$2.5 billion to US$3.5 billion, assuming a listing of price to
earnings of 15 times to 20 times,” it said.
It said the potential IPO would be positive for Genting Malaysia and Genting Bhd given their indirect interests in Travellers group.
“Nonetheless,
given that Genting Malaysia's effective stake in the Travellers group
works out to be an insignificant 9.2% while Genting Bhd's effective
interest in Travellers group stands at 4.7% based on our computations,
we would advise that investors take a look at Genting Hong Kong, which
is currently trading at 19 times 1-year historical price to earnings
ratio, as a more direct proxy play to the potential listing of
Travellers group,” it said.