KUALA LUMPUR, July 26 ― Genting Malaysia Bhd was among the top gainers with shares up by 5.2 per cent as the company entered into a settlement agreement to resolve disputes with Twenty First Century Fox and The Walt Disney Company.
At 11.38am, its shares rose 19 sen to RM3.86 with 36.87 million shares transacted.
To recap, in November 2018, Genting Malaysia filed a lawsuit in the US District Court against the defendants (Fox Entertainment Group, Twentieth Century Fox, Twenty First Century Fox and The Walt Disney Company) for not wanting to continue with the agreement to build the first Fox World theme park in Malaysia.
Genting Malaysia was seeking more than US$1 billion in damages.
“But as part of the settlement, the parties have entered into a Restated Memorandum of Agreement (MoA) granting Genting Malaysia a licence to use certain Fox intellectual properties.
“As we have earlier cut our visitor arrival assumption to three following the announcement of the legal proceedings in November 2018, we now revise up our assumption given the full resolution of the dispute,” Public Investment Bank said in a statement.
It raised its financial year 2020-2021 forecast earnings on the company by 5-11 per cent after factoring in higher visitor arrivals of 5-6 per cent.
The research house set a “neutral” call on the stock with a target price of RM3.55. ― Bernama
