KUALA LUMPUR: Genting Malaysia Bhd is acquiring two IT support services entities from sister company Genting Singapore plc for RM50 million. The related party transaction will enable Genting Malaysia to reap cost savings.
In a statement to Bursa Malaysia, Genting Malaysia said it is buying the entire stakes in E-Genting Holdings Sdn Bhd and Ascend International Holdings Ltd for RM48 million and RM2 million respectively. It is acquiring the E-Genting stake from Genting Singapore subsidiaries Sedby Ltd and Geremi Ltd ,while the Ascend stake will be purchased solely from Sedby.
Genting Singapore acquired E-Genting in 2005 for RM87.4 million and Ascend for HK$2 in 2007.
“The services provided by the acquiree group (E-Genting and Ascend) are mainly to the Genting Malaysia group of companies, comprising IT, implementation, support and maintenance services as well as Malaysian WorldCard loyalty programme management services.
“As the largest customer and user of the acquiree group’s services, [Genting Malaysia] will enjoy cost savings as a result of the proposed acquisitions, especially in view of the fact that the acquiree group will also be providing services in relation to [Genting Malaysia’s] future projects,” Genting Malaysia said.
The company will finance the acquisitions with internal funds. The exercise is due for completion by the end of this month.
Genting Malaysia said it would invest the necessary resources in E-Genting and Ascend to ensure the IT entities are provided with trained personnel and adequate capital expenditure.
“The services provided by the acquiree group are expected to increase, in line with the Genting Group’s business expansion and new international projects.
This is expected to contribute positively to the future financial performance of the acquiree group,” Genting Malaysia said.
This article appeared in The Edge Financial Daily, October 25, 2011.
In a statement to Bursa Malaysia, Genting Malaysia said it is buying the entire stakes in E-Genting Holdings Sdn Bhd and Ascend International Holdings Ltd for RM48 million and RM2 million respectively. It is acquiring the E-Genting stake from Genting Singapore subsidiaries Sedby Ltd and Geremi Ltd ,while the Ascend stake will be purchased solely from Sedby.
Genting Singapore acquired E-Genting in 2005 for RM87.4 million and Ascend for HK$2 in 2007.
“The services provided by the acquiree group (E-Genting and Ascend) are mainly to the Genting Malaysia group of companies, comprising IT, implementation, support and maintenance services as well as Malaysian WorldCard loyalty programme management services.
“As the largest customer and user of the acquiree group’s services, [Genting Malaysia] will enjoy cost savings as a result of the proposed acquisitions, especially in view of the fact that the acquiree group will also be providing services in relation to [Genting Malaysia’s] future projects,” Genting Malaysia said.
The company will finance the acquisitions with internal funds. The exercise is due for completion by the end of this month.
Genting Malaysia said it would invest the necessary resources in E-Genting and Ascend to ensure the IT entities are provided with trained personnel and adequate capital expenditure.
“The services provided by the acquiree group are expected to increase, in line with the Genting Group’s business expansion and new international projects.
This is expected to contribute positively to the future financial performance of the acquiree group,” Genting Malaysia said.
This article appeared in The Edge Financial Daily, October 25, 2011.
