GENTING Group’s subsidiary in Singapore is selling a 4.8 per cent stake in Australia’s Echo Entertainment Group.
According to a report in Reuters, Genting Singapore revealed it was selling 39.6 million Echo shares at A$3.99 (US$4.16) per unit, valuing the stake at around A$158 million. The company currently holds close to 10 per cent in Echo shares.
Market observers say the move will allow Genting’s rival, Crown, to close in on Echo, operator of the The Star Sydney Casino & Hotel, which is known to attract scores of Asian high rollers.
Crown, controlled by Australian billionaire James Packer, already owns a 10 per cent share in Echo, and is seeking regulatory approval to increase the stake to 25 per cent.
Meanwhile, Genting Hong Kong sought to reassure shareholders that it would continue to hold on to its investment in Echo in a statement released yesterday. The company also said it remained committed to its application to acquire more than 10 per cent voting power in Echo.
