Genting Singapore takes stake in Australian casino operator

Singapore gaming operator Genting said it has taken a stake in Australian casino operator Echo Entertainment, just as Echo’s chair unexpectedly resigned to avoid a damaging vote called by billionaire rival James Packer.

Analysts speculated that Genting was preparing for an acquisition, having built up a war chest of $3.9 billion, and said Echo’s casinos were in cities where Genting had attempted to win licences in the past.

A Genting spokesman declined to give the size of the stake but said the value of its investment is $298 million. The Australian newspaper said earlier that Genting had built up a 4.9 per cent stake in Echo, which runs casinos in Sydney and the Gold Coast of Australia.

Echo said separately that its chair, John Story, has resigned, bowing to a destabilising campaign run by Packer who owns a rival casino operator and wanted to sack the chair.

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_808621.html

 

Category: Singapore