Cruise ship and resort operator Genting Hong Kong, subsidiary of Malaysian conglomerate Genting Group, won a key approval from the New South Wales government to increase its stake in Australian gambling company Echo Entertainment.
Genting Hong Kong was permitted to raise its current stake to no more than 23%. At present, the company owns 6.6% of the casino operator’s shares and is the second largest shareholder in it.
Under the New South Wales gambling regulations, no shareholder can hold bigger than a 10% stake in a given gambling operator without this first being approved by the local authorities.
Genting Hong Kong submitted its application for an increase in its shares in Echo Entertainment back in 2012. The company has waited for an approval from the state Independent Liquor and Gaming Authority since then.
At first, Genting Hong Kong requested to be permitted to own a 25% stake in the Australian casino company. However, the above-mentioned regulator settled on the 23% cap. The same was granted to Crown Resorts, owned by business James Packer, back in 2012, when the operator was looking to assume greater control over its rival. Subsequently, Crown Resorts sold its stake in Echo Entertainment in 2013.
The Independent Liquor and Gaming Authority said that it gave its nod to Genting Hong Kong’s application as it is to become “close associates” with Echo Entertainment’s The Star casino in Sydney. Furthermore, the regulator said it is satisfied with the fact that the said casino’s ownership, funds, operation and management would remain stable even after the Asian company increases its stake in it.
Commenting on the New South Wales government’s decision, Genting Hong Kong said in a Friday statement that it was pleased with it but is yet to determine whether it would indeed increase its stake in Echo Entertainment. Here it is important to note that the cruise ship and resort operator needs to receive one more approval in order to be able to do so.
Given the fact that Echo Entertainment operates two gambling venues in Queensland – Jupiters located on the Gold Coast and Treasury in Brisbane, Genting Hong Kong needs an approval from Yvette D’Ath, state Attorney General and Justice Minister. According to local media, Ms. D’Ath is to give her nod to the move within a fortnight.
