Genting Singapore Investors Receive $213M Dividend, Company Focus Turns to Japan
Posted on: May 28, 2020, 12:10h.
Last updated on: May 28, 2020, 12:33h.
Genting Singapore, owner and operator of Resorts World Sentosa in the Southeast Asia city-state, is distributing a 2019 annual dividend of $213 million USD to shareholders.
At the company’s 35th annual general meeting, held today remotely because of the COVID-19 pandemic, stockholders approved an aggregate year-end dividend of SGD302 million ($213.25 million USD).
With a little more than 12.09 billion outstanding shares, the dividend equates to SGD0.025 per share ($0.018). The vote was 99.92 percent of all shares in favor of the dividend, to just 0.08 percent against.
Shareholders additionally reelected Tan Hee Teck as director of the annual meeting, and he will remain president and chief operating officer of Genting Singapore.
Billionaire Lim Kok Thay, whose father Lim Goh Tong founded Genting Group in 1965, maintains control of Genting Singapore and its parent group. Forbes estimates the 68-year-old to have a net worth of $2.5 billion USD.
Along with Singapore, Genting Group owns and operates integrated resorts and casinos in Malaysia, Philippines, Bahamas, United States, and the UK. Genting has several leisure and hospitality divisions that control the gaming destinations.
Genting Singapore will be the branch of Lim’s global empire that goes after Japan. The country is in the process of finalizing its commercial gambling laws before it begins accepting proposals for three multibillion-dollar casino resorts.
Before the COVID-19 pandemic struck, Japan had the attention of the world’s largest casino operators. But with economic destruction endured around the globe, the market opportunity might have lost some luster.
Genting Singapore, however, says it still sees a bright opportunity in the Land of the Rising Sun.
The Japan IR investment opportunity continues to feature in our long-term growth strategy,” a Genting Singapore statement explained. “We have been engaged in the ongoing Request-for-Concept by Yokohama City, and are anticipating the launch of the Request-for-Proposal in the second half of 2020.”
Genting’s odds of winning licensure in Yokohama greatly improved earlier this month when Las Vegas Sands dropped out of the race. Sands’ Marina Bay Sands is Resorts World Sentosa’s competitor in Singapore, as the two hold a duopoly on casino gambling in the city-state.
Genting Singapore remains committed to Japan. But the company admits 2020 will be a difficult stretch. Resorts World Sentosa has been shuttered since April 7, and the Singapore Casino Regulatory Authority (CRA) says it won’t be opening for at least another week.
“Given the fluidity of the unfolding COVID-19 situation, the Group remains pessimistic on its outlook for the remaining year,” the company stated. Singapore has 32,343 confirmed cases of the coronavirus, and 23 deaths.
2020 will almost certainly be Genting Singapore’s second consecutive year reporting a drop in full-year profit. Last year, the group said profit totaled $486 million, an 8.8 percent year-over-year decline.
Genting Singapore and Las Vegas Sands have agreed to further invest $3.3 billion each into their resorts in exchange for the Singaporean government extending their duopolies through 2030.
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