Genting close @round 5.70-5.75 today

probably worries about Gen Int's losses

But Genting is still making profit,

and with its total assets - total liabilities = RM5.8x per share, i think the price is getting better as it goes down

Genting says in talks to sell power assets

 Published: 2008/05/29

Tenaga Nasional says it would consider bidding for Genting’s power generation business

MALAYSIAN gaming to power company Genting Bhd has held talks with different parties to sell its power generation business, but no decision has been made, the company said yesterday.

“Genting wishes to confirm that it has been approached by various parties for the potential purchase of its power assets,” the company said in a statement.

"As Genting is constantly reviewing its portfolio of investments to assess the efficiency of its invested capital and to optimise returns, it has had discussions with third parties to explore opportunities as and when they are presented,” the company said.

Genting said if there are any developments requiring an announcement to be made to Bursa Malaysia Securities, it will make the appropriate announcement in due course.

Separately power distributor Tenaga Nasional Bhd said it would consider bidding for Genting’s power generation business.

“It would be natural for TNB, as the vertically integrated utility in the Malaysia power sector, to look towards expanding its business,” it said in a statement.

“This too would be in line with TNB’s 20-year strategic plan to become international player in the power business.”

A financial daily, quoting unnamed sources, had said yesterday that Tenaga had emerged as frontrunner to purchase Genting’s energy assets.

It said the price for Genting’s power assets, which include plants in Malaysia, China and India, had not been decided but could exceed RM3 billion (US$938 million). - Bernama, Reuters

Last edited on Thu May 29th, 2008 03:02 by random

"As Genting is constantly reviewing its portfolio of investments to assess the efficiency of its invested capital and to optimise returns, it has had discussions with third parties to explore opportunities as and when they are presented,” the company said.

I might just want to address the issue of why?

Power income is a cash cow isn't it? It was for Worldwide.

So why dispose?

Correct me if i am wrong, Genting Sanyen just contributes profit - err.. the profits from the power plant... is 'like' a pure tap, isn't?  Not much expenditure is needed, yes?

And then I might ask... what if Genting selling cos it needs mega bucks?

Their new casion projects is massive yes? Big bucks needed to be spend, yes? So could this be the reason why Genting needs to sell of one the sweetest ever cash cow??

I dunno... u got any answer?

Last edited on Thu May 29th, 2008 07:46 by random