GENTING UPS ECHO STAKE
19 June 2013,
GENTING has upped its stake in rival Echo Entertainment Group (ASX: EGP).
The Hong Kong-based gaming and leisure group boosted its holding in EGP to 54.5 million shares, an increase from 5.22 per cent to 6.6 per cent of voting power in the casino operator.
Genting made the move on June 14 and EGP notified the market last night after becoming aware of the trade.
It comes after EGP rival James Packer’s company Crown (ASX: CWN) sold its 10 per cent stake in the company in May, which sent the company’s share value crashing below $3.
Echo is the sole casino license holder in New South Wales and owns The Star in Sydney. It is engaged in a fierce turf war with Crown in the NSW capital, with Packer’s company pushing to create a high-rise casino development at Barangaroo.
The EGP share price has staged a fight back this month and this morning moved up 1.97 per cent to $3.10 per unit.
Genting first took a 9.9 per cent interest in EGP in June last year, but sold most of its holding about three months later.