ECHO DISAPPOINTED AT REJECTION

Written on the 5 July 2013

ECHO DISAPPOINTED AT REJECTION

ECHO Entertainment (ASX:EGP) has responded with disappointment to the NSW government’s decision to reject its billion-dollar redevelopment proposal for Sydney’s The Star casino.

Premier Barry O’Farrell yesterday gave the green light to a rival proposal from Crown Limited (ASX: CWN) for its $1bn high-rise hotel and casino at Barangaroo South on the Darling Harbour.

EGP had produced its proposal in response to CWN’s unsolicited bid to the NSW government, but James Packer’s company was holding the trump card and secured approval to move to stage three of the process.

The Brisbane-based company dropped 4.12 per cent to $2.79 per unit as trade opened this morning and it came out of a trading halt called in anticipation of yesterday’s announcement.

CWN opened strongly, up 5 per cent to $12.21, also resuming from a trading halt.

Echo chairman John O’Neill says its proposal was complementary to the government’s vision for a revitalised Pyrmont and Darling Harbour precinct and is disappointed it was overlooked.

The company’s 80-year Sydney casino license includes another six years of exclusivity and it plans to make the most of those years.

“The Star is Echo’s flagship property and we are here for at least another 80 years,” says O’Neill.

“Echo remains conservatively geared and, in the absence of its unsolicited proposal proceeding, has the funding and operational flexibility to pursue a range of growth avenues for the business.

“Echo looks forward to working constructively with the NSW government and exploring other initiatives to deliver an enhanced integrated resort at The Star which will drive significant tourism and other economic benefits for NSW and generate value for Echo’s shareholders.”


Latest News

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter