Genting gets NSW nod to lift Echo stake

Asian leisure giant Genting Hong Kong has received part of the approvals needed to lift its stake in casinos operator Echo Entertainment.

The NSW gaming regulator has granted permission to Genting Hong Kong to lift its stake in casino operator Echo Entertainment to up to 23 per cent.

Genting HK, a leisure, entertainment and hospitality group, currently holds a 6.6 per cent stake in Echo, the operator of The Star in Sydney, Brisbane's Treasury Casino and Jupiters on the Gold Coast.

Echo is also developing a new casino-resort and residential precinct at Queen's Wharf in Brisbane.

The company's constitution restricts individuals from having a voting power of more than 10 per cent, unless permission is granted by NSW and Queensland gaming authorities.

The NSW Independent Liquor and Gaming Authority considered Genting HK's application for three years before giving it the green light, and said the Asian company would become "close associates" of The Star if its stake was to grow.

Genting HK still needs approvals from Queensland to lift its stake in Echo, and it said it has not yet made a decision on its investment.

Shares in Echo were 10 cents higher at $4.74.

The NSW Gaming Authority said its decision was held up by delays in Genting HK providing information to the authority, and Genting HK's significant new investments in jurisdictions where the authority had little background knowledge.

Genting HK's businesses include Star Cruises in the Asia-Pacific, Crystal Cruises, Resorts World Manila, and a stake in Norwegian Cruise Line.


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Source: AAP


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