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’s fly-in visit — including meetings with senior Echo executives and gaming authorities — signalled that Genting is serious about its investment in Echo Entertainment and is actively pursuing approval to increase its stake.
Genting has applied for regulatory clearance to increase its shareholding in Echo Entertainment from about 6.2% to 25%.
Yes — James Packer’s Crown has also made an application to increase its stake in Echo Entertainment, according to the article.
Crown’s proposal to build its own casino at Barangaroo has raised questions about whether James Packer would continue to increase his Echo shareholding, since he’s pursuing an alternative casino development.
Echo has applied to the NSW government for an extension of its exclusive right to operate a casino in New South Wales beyond 2019, and this proposal includes an unspecified payment for additional exclusivity.
The O'Farrell government (NSW) will make the decision on which proposal — Echo’s exclusivity extension or competing plans such as the Barangaroo proposal — would be better for the state.
Echo Entertainment is the owner of Sydney’s Star complex, the major casino and entertainment precinct referenced in the article.
Both companies need clearance from gaming authorities to increase their shareholdings in Echo Entertainment; the article notes K.T. Lim met with gaming regulators as part of that process.
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