SINGAPORE (Dec 3): Another hammer has hit hard on the share prices of Genting Malaysia and its parent Genting, as the casino operator will not be able to complete its 20th Century Fox World Theme Park project, in which it has invested US$750 million ($1 billion).

News broke in Los Angeles, US on Nov 26 that Genting Malaysia had filed a lawsuit against Twenty-First Century Fox group of companies (Fox) and its soon-to-be owner Walt Disney Co for terminating the licensing agreement with Genting Malaysia for Fox intellectual property (IP) rights. The lawsuit accused the two US companies of abandoning a licensing contract tied to the planned construction of the Fox-branded theme park in Genting Highlands.

The termination of agreement sparked another wave of strong selling on Genting Malaysia, wiping out RM3.39 billion ($1.1 billion) in market capitalisation on Nov 27 as investors were getting even more concerned over its earnings prospects shortly after the government’s move to raise gaming duties by 10%, to 35%, on collected revenue.

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