GENTING'S ECHO AMBITIONS NOW UP TO QUEENSLAND

Written on the 4 September 2015 by Nick Nichols

GENTING'S ECHO AMBITIONS NOW UP TO QUEENSLAND

ASIAN leisure group and cruise line operator Genting Hong Kong has been given the green light by NSW regulators to lift its stake in Echo Entertainment (ASX:EGP) from 10 per cent to 23 per cent.

The NSW Independent Liquor and Gaming Authority (ILGA) today finally announced THAT approval had been granted for the application that was lodged by Genting in 2012.

However, the Asian company which owns Star Cruises and has since expanded into resorts, now has to wait on the Queensland Government's blessing before proceeding.

ILGA says its approval caps Genting's voting power in Echo at a 23 per cent rather than 25 per cent.

In granting the approval, ILGA says it took into consideration whether Genting and any individual or entity connected with the company would be suitable associates of the management of The Star Sydney, Echo's flagship property.

The authority concedes the application took longer than expected, initially blaming Genting for not providing it with required information.

It says Genting also had since made investments in a number of jurisdictions where the authority 'had little background knowledge, requiring on several occasions the commencement of new lines of investigation'.

"The authority at all times worked to bring the investigation to a conclusion as soon as it was in a position to do so," says Chris Sidoti, the ILGA chair in his decision.

Genting is controlled by Malaysian billionaire KT Lim and the group also controls one of Asia's largest gaming companies, Genting Singapore. It has investments in a number of US casinos.

ILGA says its investigation into Genting has been run independently of the Office of Liquor Gaming and Racing in Queensland, although it says it has liaised with the Queensland authority when needed.

There is no indication when the Queensland decision will be handed down.

Echo's shares, which have benefitted from a strong FY15 financial performance, rose to a high of $4.80 on the news this morning.


Author: Nick Nichols

Latest News

BRISBANE COAL TERMINAL REOPENS AFTER SHIPLOADER REPAIR

COAL loading has recommenced at New Hope's (ASX: NHC) Brisbane terminal today after repairs to its ship loader, w...

SUPERYACHTS OFFER UNTAPPED POTENTIAL AT COMMONWEALTH GAMES

SUPERYACHT Australia has devised a strategy to attract more superyachts to Queensland and capitalise on revenue op...

GDP FIGURES A 'WAKEUP CALL' FOR PARLIAMENT

THE GDP figures are an end-of-year wakeup call for Parliament about what lies ahead for the country, according to ...

ACCC GIVES GO-AHEAD FOR NEWS CORP TO BUY ARM

NEWS Corporation (ASX: NWS) has been given the green light to acquire Australian Regional Media (ARM) from APN New...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

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...

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