Asian giant back in Echo picture
How close Genting intends to become with Echo will now be the subject of intense speculation.
K.T. Lim is one of the most powerful businessmen in Asia and his fly-in, fly-out visit to talk with gaming authorities about clearance to increase Genting's shareholding in Echo from 6.2 per cent to 25 per cent puts paid to suggestions that it had lost interest.
Mr Lim had breakfast with senior Echo executives on Friday before meeting gaming authorities.
Both Genting and James Packer's Crown have made applications to increase their stakes in Echo, but since then Mr Packer has pitched a proposal to build his own casino at Barrangaroo on Sydney's inner city foreshore. This raised a question over whether he would buy more Echo shares.
Meanwhile, Echo has applied to the NSW government for an extension of its exclusive right to operate a casino in NSW beyond 2019 - leaving the O'Farrell government to make a decision on which proposal would be better for the state.
Echo's proposal comes with an unspecified payment for additional exclusivity.
Frequently Asked Questions about this Article…
K.T. Lim is the chairman of Malaysian gaming giant Genting. His fly‑in, fly‑out visit to Sydney — including a breakfast with senior Echo executives and meetings with gaming authorities — signalled Genting is serious about its investment in Echo Entertainment and is seeking regulatory clearance to increase its stake.
According to the article, Genting currently holds about 6.2% of Echo Entertainment and is seeking regulatory approval to increase its shareholding to 25%.
Yes. The article says both Genting and James Packer’s Crown have made applications to increase their stakes in Echo Entertainment.
James Packer has pitched a proposal to build his own casino at Barrangaroo on Sydney’s inner‑city foreshore. That proposal has raised questions about whether Crown would continue buying more Echo shares, and it gives the NSW government options to compare when deciding what’s best for the state.
The article notes that both companies are meeting gaming authorities for clearance. Any increase in significant shareholding in a casino operator like Echo requires approval from the relevant gaming regulators and authorities.
Echo has applied to the NSW government for an extension of its exclusive right to operate a casino in New South Wales beyond 2019. The application includes an unspecified payment in return for additional exclusivity.
The NSW government will decide which proposal — Echo’s exclusivity extension or other bids like Crown’s Barrangaroo plan — is better for the state. That decision could influence Echo’s competitive position, potential revenues from exclusivity, and the strategic moves of major shareholders.
Investors should monitor announcements about regulatory clearances from gaming authorities, any formal changes in shareholdings, the NSW government’s decision on Echo’s exclusivity extension, and developments around Crown’s Barrangaroo proposal — all of which could affect Echo Entertainment’s ownership dynamics and future prospects.
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