Thứ Tư, 19 tháng 6, 2013

Genting ups Echo stake to 6.6pc

Malaysian casino mogul KT Lim’s Genting group has raised its stake in Echo Entertainment, and raised eyebrows over its strategy in Sydney’s casino war. Photo: Charles Pertwee



Genting Hong Kong has increased its stake in Echo Entertainment, prompting fresh speculation about whether the Asian gaming group will take sides in a battle against James Packer’s Crown over Sydney’s casino market.


Genting, owned by Malaysian casino mogul KT Lim, has increased its stake in Echo to 6.6 per cent from 5.22 per cent, according to a substantial shareholder notice filed with the ASX.


The move comes just days before ­Friday’s deadline for Echo and rival Crown to submit proposals for gaming facilities in Sydney to the New South Wales government.


Genting applied for regulatory approval to lift its stake in Echo, which owns Sydney’s The Star casino, beyond 10 per cent in June 2012 and is still ­waiting for a decision.


The Asian gaming and hotels group acquired a stake in Echo last year in what was seen as a strategic move shortly after Crown invested in the company.


Echo, which has an exclusive casino licence until 2019, wants to extend its period of exclusivity in return for ­further development of The Star and surrounding tourist areas.


Crown wants to develop a high-end casino and hotel in Sydney.


There had been speculation Genting may sell down its stake in Echo after Crown exited the company in May, reducing the likelihood of a takeover bid for the company.


Genting has met with both Packer and executives at Echo to discuss potential alliances, but has kept its cards close to its chest about its intentions for the Australian market.


Echo held a board meeting at Gen­ting’s Resorts World Sentosa casino in Singapore early this year. Echo chief John Redmond has not ruled out a joint venture deal in the future. Genting is seen as a potential powerful partner for either Crown or Echo, which are both seeking to lure more VIP gamers to Australia from Asia.


Echo shares closed 3¢ higher at $3.04 on Tuesday.


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Genting ups Echo stake to 6.6pc

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