Malaysian gaming group Genting Berhad last month invested 0 billion in MGM Mirage. The investment gives Genting a 3.2 percent stake in the operator. Experts say the company wants even more, and is eying an entry into the Macau market by purchasing MGM’s half of a joint venture with Pansy Ho.
MGM is under pressure to re-evaluate the partnership in light of the negative report issued by the New Jersey Division of Gaming Enforcement, to be considered soon by the state’s Casino Control Commission. MGM says it disagrees with the DGE report and will vigorously defend the relationship with Pansy, the daughter of Macau gambling magnate Stanley Ho.
The stake was offered under a new $1 billion public offering issued by MGM Mirage last month. The offer was concluded last month with investors subscribing to nearly the full amount.
MGM Mirage considers the Genting investment as a good thing. “We take this as a sign of great confidence in our company,” said Alan Feldman, senior vice president of public affairs for MGM Mirage.
Genting has been anxious to gain a stake in Macau, where the casino boom of the mid-2000s has eased, but promises to surge again. A spokesman for the company played down the investment as merely an interest in gaming on an international basis.
“We are constantly looking to broaden our portfolio of strategic investments and strengthen partnerships around the world,” said Justin Leong, head of strategic investments and corporate affairs for Genting.