Genting used to say she want the power generation business in her portfolio to offset the effect on economy circle to her casino core business.
But after Genting got the chance to expand to Singapore, I think she has change her strategy from diversification to focus on her core business. We can easily see her ambition to become regional player and later global player. Disposing her non core business is the strong evidence to prove Genting determination towards her ambition.
The power generation business is contributing 16% to Genting operating profit and it proved as cash generating and stable business that will not affect by economy cycle. Some have say that the power assets of Genting worth more than RM3 billion, and it can be RM4.5 billion.
As I said before, I am very welcome that Genting to dispose her non core business and focus on core business but she can not just sell her power assets with big discount while that profit making business. Genting should get premium from the disposal or at least with reasonable price. I believe there is many specialist in Genting can help to calculate that or just refer to the analyst who quote RM4.5 billion and Mr. Lim who has good business sense should not make wrong decision on this manner.
But after Genting got the chance to expand to Singapore, I think she has change her strategy from diversification to focus on her core business. We can easily see her ambition to become regional player and later global player. Disposing her non core business is the strong evidence to prove Genting determination towards her ambition.
The power generation business is contributing 16% to Genting operating profit and it proved as cash generating and stable business that will not affect by economy cycle. Some have say that the power assets of Genting worth more than RM3 billion, and it can be RM4.5 billion.
As I said before, I am very welcome that Genting to dispose her non core business and focus on core business but she can not just sell her power assets with big discount while that profit making business. Genting should get premium from the disposal or at least with reasonable price. I believe there is many specialist in Genting can help to calculate that or just refer to the analyst who quote RM4.5 billion and Mr. Lim who has good business sense should not make wrong decision on this manner.
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