Malaysia's Resorts sees no hindrance to Macau investment
KUALA LUMPUR, June 16 (Reuters) - Officials at Malaysia's gaming firm Resorts World Bhd RWBW.KL told shareholders on Tuesday it does not see any obstacles in investing in the Chinese gambling enclave of Macau, but has made no decision about the move.
"If the opportunity arises in Macau, there is no hindrance for Resorts to invest (in Macau)," Lim Kok Thay, chairman and chief executive of both Resorts and Genting, told shareholders.
"The answer (on whether to invest in Macau) is a big maybe. It depends on what the situation is," Lim said.
The comments came amid intense speculation that Malaysia's Genting Group may be a potential buyer of MGM Mirage's (MGM.N) stake in a joint venture in Macau.
MGM, which is saddled with debt, is under pressure from U.S. gambling regulators to sell its stake in Macau after the New Jersey Association of Gaming Enforcement raised objections about its Macau joint venture partner Pansy Ho, the daughter of Macau's casino kingpin Stanley Ho. [ID:nN19429283]
Credit Suisse, in a report earlier this month, said the Genting group would have to consider the risk of the regulators in Singapore questioning the relationship if it was to buy MGM's stake in the Macau operation.
The Malaysian group recently subscribed for a combined $100 million worth of notes issued by MGM Mirage and purchased a 3.2 percent stake in MGM, a move MGM senior vice-president for public affairs Alan Feldman said made strategic sense.
Resorts, a unit of gaming group Genting (GENT.KL), operates the Genting Highlands Resort, a casino, with hotel and theme park facilities.
Analysts say Resorts is the likely vehicle within the group to undertake an overseas acquisition because it has over $1.3 billion in net cash and zero gearing. (Reporting by Loh Li Lian; Writing by Julie Goh; Editing by Saeed Azhar)
