KUALA LUMPUR: Shares in Lim Kok Thay’s Genting Bhd tumbled today, adding pressure on the tycoon to shore up a cruise ship operator whose debt woes have rattled investor confidence in one of Southeast Asia’s biggest conglomerates.
Genting Bhd slid as much as 5.8% as of 9.40am, the most since March 23. Markets were closed for a holiday yesterday. Cruise company Genting Hong Kong Ltd announced late on Wednesday that it would suspend all payments to creditors.
The Genting group has embarked on pay cuts and workforce reductions as the coronavirus pandemic halted demand for cruises while national movement restrictions kept people out of casinos and resorts. The Hong Kong cruise firm is linked to Genting Bhd through its chairman Lim, who owned 69% of the Hong Kong unit’s shares as of April 3.
Citigroup Inc sees low risk of Genting group companies bailing out the Hong Kong cruise firm, though there’s “some reputational damage”, according to a note.
The biggest lenders to Genting Hong Kong’s syndicated loans are Malayan Banking Bhd, which fell as much as 1.8% today and RHB Bank Bhd, which slid 1.6%. Genting Malaysia Bhd, which operates a casino and resort outside of Kuala Lumpur, slumped as much as 6.1%. - FMT
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