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

FLYING START TO 2017 PASSENGER NUMBERS FOR GOLD COAST AIRPORT

RECORD numbers of travellers used the Gold Coast Airport (GCA) in January this year, continuing a five-year trend ...

SUNCORP SAYS IT'S 'COVERED' AGAINST FINANCIAL COST OF CYCLONE DEBBIE

INSURER Suncorp (ASX: SUN) says it is "well protected" against the financial impact of Cyclone Debbie th...

ADELAIDE DIGITAL MARKETING GURUS CHANGING THE FACE OF ONLINE RETAILING

Frank Grasso, CEO of Adelaide based Dynamic Creative, believes his company's new software will revolutionise Adwo...

WHY A JUNIOR MINER DECIDED TO JOIN THE RANKS OF THE HOT POT STOCKS

USUALLY, when a relatively unknown explorer experiences a sharp spike in its share price, it means they've fou...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter