SINGAPORE: Casino operator Genting Singapore said yesterday it plans to raise up to $1.63 billion in a rights issue.

Genting Singapore, a unit of Malaysia's Genting Bhd, said the funds raised will strengthen the balance sheet of the company and its subsidiaries, and enhance the group's potential for future business expansion.

About 60 per cent of net proceeds raised will be used to pursue future strategic opportunities in the firm's core business of leisure, hospitality and gaming, the company said in a statement.

The remaining 40 per cent will be used for working capital purposes.

Said Genting Singapore's managing director, Mr Justin Tan: "The rights issue will strengthen the company's financials and put us in a strong position to tap strategic opportunities.

"Despite the uncertainty in the capital markets, we are getting great support from the banks. This is testimony to the
confidence placed in Genting Singapore."

The group is developing the $6.59 billion Resorts World Sentosa - one of two integrated resorts in Singapore - which is on track for a soft opening early next year, said Genting.

The firm will offer shareholders one rights share for every five held at $0.80 a share, which represents a discount of32.8 per cent to Genting's closing price of $1.19 on Tuesday.

The issue will be fully underwritten by DBS Bank, CIMB-GK Securities, JP Morgan, ABN Amro Bank, CLSA
Merchant Bankers, Deutsche Bank, HSBC and UBS.

Source: Asiaone Business