Resorts World Berhad:First Treasury Buy-in

Friday (20 July 2007) was a historical day for Resorts World. This was the first time the company initiated its Treasury buy-in programme. Some 9 million shares were bought at an average price of RM4.15 each. Cost them RM37.36 million.

Interestingly, they called this buying-in the start of their capital management plan. Nomenclature aside, Resorts's Head of Strategic Investment and Corporate Affairs, Justin Leong said in no uncertain terms that this is a positive step towards enhancing value for all its shareholders. I hope they have the guts to put the money where their mouth is which I know they have plenty.

Resorts was criticised for failing to manage their surplus cash pile and we hope they will be be generous as well to give out good dividends every quarterly which I think will be good for Genting as it embarked on building up Resorts World, Sentosa Island in Singapore.

Current cash pile is at RM2 billion and expected to double up by year end 2007.

Heartsong