A minority shareholder is reportedly suing U.S.-based casino company Empire Resorts Inc., the operator of Resort World Catskills in New York, saying its shares are undervalued in connection with a privatization bid by a stake controlled by the Malaysian casino dynasty Lim family.
The local Times Herald Records newspaper reported on the matter on Wednesday, citing a filing from New Jersey shareholder David Mullen in the state Supreme Court on Tuesday.
Empire Resorts Inc., which suffered losses in August, posted a nearly $138.8 million deficit in the fiscal year ended Dec. 31, 2018, and told Nasdaq it had agreed to a merger agreement to take the company private. 슬롯사이트 추천
Under the agreement, Kien Haut Realty III\'s affiliates are the family trusts of businessman Lim Kok-Tay, the controlling shareholder of Malaysia-based casino and plantation giant Genting Group, while the latter\'s affiliate, Asia-based casino operator Genting Malaysia Bhd, will acquire all outstanding shares in Empire Resort that are not currently owned by Kien Haut or its affiliates.
Its subsidiary Genting (US) Ltd will pay $128.6 million at $9.74 per share for 13.2 million Empire Resort shares held by Kien Huat Realty III, according to a separate filing from Genting Malaysia to Bursa Malaysia.
New York state news outlets say Mullen accused Empire Resort and its board of directors in their lawsuit of approving the deal because they did not provide enough information to evaluate Lim\'s and Genting\'s proposals and because board members would benefit financially. He is reportedly seeking class-action status for minority shareholders.
The lawsuit also allegedly alleged that the Lim family and Genting Group had robbed third-party offers by publicly declaring in Empire Resorts\' financial filings that they would not consider an acquisition offer deemed unsuitable for Empire Resorts.
On Thursday, Empire Resorts filed a timeline for the proposed privatization transaction on the Nasdaq, confirming an offer price of $9.74 per share for the transaction, which includes less than 5.95 million shares of common stock and other related securities.