Genting Malaysia, a casino and hospitality giant, has sold off two of its Casinos in the UK due to weak sales and shrinking revenues. Genting Uk, an owned subsidiary of Genting Malaysia, disposed all its stakes in Coastbright Ltd., casino operator of Maxims Club Casino in Kensington, London.
The Canadian Sonco Gaming Inc. bought it for $45.6 million. The Maxim brand is now wholly owned by Sonco Gaming, following the deal. The subsidiary of Genting Malaysia, Genting UK owned Coastbright, had purchased the Maxims casino ten years ago. However, the casino was suffering to generate revenues.
The move of disposing of the stakes in coastbright entirely and selling the Maxims casino to Sonco is strategic. By selling the establishment, the company is looking forward to generating some cash which could be used to repay the debts and also allow them to pursue new investment opportunities.
Genting Malaysia expects to generate a minimum of $30.3 million all expenses covered, as a result of the deal. In its filing with In a filing with Bursa Malaysia, Genting revealed that “The proceeds from the disposal are intended to reduce Genting UK group’s borrowings, and for other potential investment opportunities.”
Genting started its business in the UK back in 2006, and as of today Genting UK manages and operates over 40 different gaming venues. The move to get away with Maxims wasn’t unexpected as it was underlying since 2017 as the company couldn’t do more with the shrinking revenues.