KUALA LUMPUR, March 27 — Genting Bhd and Genting Malaysia Bhd’s shares rallied in early trade Monday on a possible exit from the Miami property market with big gains.Maybank Investment Bank Bhd said that more than a decade after entering the Miami property market, Genting Malaysia is likely to exit it but with a whopping profit in tow.
The company could recognise a gain on disposal of about RM2.9 billion, assuming the waterfront is sold for US$1 billion.It was reported that Genting Malaysia’s property in Miami, Florida has attracted five offers, with the highest bid being just under US$1.5 billion.“Recall that Genting Malaysia had invested US$500 million throughout May and September 2011 to acquire the aforesaid property. Note that the ringgit was trading at only RM3.00:US$1 then versus RM4.43:US$1 currently,” it noted.
Maybank Investment said it was maintaining earnings estimates, a buy call, and a RM2.97 target price on Genting Malaysia pending the finalisation of the property sale. — Bernama