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Genting Buys Out Empire Resorts At 15% Premium

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Genting Buys Out Empire Resorts At 15% Premium

Kien Huat Realty III Limited and Genting Malaysia Berhad is acquiring the remaining shares of Empire Resorts, Inc. (NASDAQ: NYNY) for $9.74 in cash per share of common stock, 

The purchase price represents a premium of approximately 15% over the Aug. 16 closing price of Empire Resorts' common stock.

The deal is expected to close in the fourth quarter of 2019, according to Empire, which owns Monticello Raceway in New York. 

Empire Resorts and Kien Huat have also amended Kien Huat's existing preferred stock commitment letter with the company. The amendment increases Kien Huat's remaining commitments from $52 million to $77 million.

"With the resources and support of Kien Huat and Genting Malaysia, Empire Resorts will be better positioned financially and operationally, which will help us advance our mission of delivering a winning combination of luxury facilities, quality entertainment and exceptional customer service,” President and CEO Ryan Eller said in a statement. 

Moelis & Company LLC is serving as financial advisor to Empire Resorts' special committee and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as its legal advisor. Cleary Gottlieb Steen & Hamilton LLP is serving as legal advisor to Genting Malaysia.

Empire Resorts shares were trading higher by 15.15% at $9.73 at the time of publication Monday. The stock has a 52-week high of $16.96 and a 52-week low of $6.31.

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