Resorts ... Nov 2008

It is sitting on a cash pile of over Rm4 billion as at June 2008, it seems to be in an excellent position to take advantage of the cheaper prices of its competitors.

With the valuations of many gaming operators dipping to very attractive levels, its huge war chest allows it to do some bargain hunting. The gaming group could enlarge its global footprint at price levels unheard of before.


Resorts is well positioned to take advantage of the current asset (2008) deflationary environment as global casino valuations are at about 40% to 50% from their peaks.

However, market talk is rife that the group has started exploring. It is understood that the gaming group is exploring potential merges and acquisitions. They are looking through a number of proposals. What these proposals are and where the investments are is not known. However, Resorts’s management has said that it wants to focus on Asia.

Resorts will probably acquire casino assets instead of equity interest. They will look into casino assets. Buying a stake in a casino company is secondary. With the falling valuations, casino assets would give the gaming group a freer had to manage its assets while expanding the group.

Industry observers believe Macau could be one of the key markets Resorts World is looking to enter.