Genting
sells half its shares in Echo Entertainment - 20th
September 2012
The
battle for control of Echo Entertainment Group, the
operator of Sydney’s Star casino, has taken a
new twist, with Malaysia’s Genting selling down
half of its 10 per cent stake.
Genting,
which operates casinos in south-east Asia, told the
stock exchange last night that it had entered into
an agreement with Citigroup Global Markets Australia
to dispose of a 4.8 per cent stake in Echo at $3.99
a share, a 2.7 per cent discount to yesterday’s
closing price of $4.10. That values the stake at around
$158 million.
"This
comes after a review by the company to rationalise
its investments portfolio," Genting said in a
statement. "The disposal is not expected to have
any material effect on earnings per share for the
current financial year," Shares in Genting rose
2.5 per cent in Singapore trade.
Genting
and Crown have been circling Echo for its Sydney Casino,
which attracts scores of Asian high rollers and last
night’s move may allow Crown to close in on what
is Sydney’s only casino operator. Crown, which
owns a 10 per cent share in Echo, has sought regulatory
approval to boost that holding to 25 per cent. An
exit by Genting opens the door for Crown to increase
its stake.
"The
market, looking at the share price, welcomes this
[move]. People didn’t understand what the strategy
could be in Australia," said Lucius Chong, an
analyst at CIMB Research. "This removes a lot
of uncertainty because Genting is good at building
casinos, looking at emerging growth, whereas Australia
is a mature market," Mr Chong said.
Crown,
which operates casinos in Melbourne and Perth, has
amassed a 10 per cent stake in Echo, and has sought
regulatory approval to go to 25 per cent.
Echo
also operates casinos in Brisbane, the Gold Coast
and Townsville in Queensland. Echo in August reported
a net profit for the 2011/12 financial year of $42.2
million, well down on the previous year’s $226
million. Echo recently spent $870 million redeveloping
its main asset, The Star, including a $100 million
payment to the New South Wales government for exclusivity.
Crown
has been lobbying the NSW government to build another
casino in Sydney at the Barangaroo redevelopment near
the CBD, just across the harbour from The Star.
Malaysian-based
parent Genting Group built its stake through its subsidiaries
in Singapore and Hong Kong in June, sparking talk
of a potential bidding war. Genting had also sought
regulatory approval to increase its holding.
It
was not clear whether Genting has withdrawn the application.
A spokesman for the regulator was not immediately
available to comment on the matter.
Profile
Genting
UK which trades as Genting Casinos has three key brands
across the provincial estate; Circus, Maxims and Mint.
Circus is a mass market proposition with 12 locations,
Maxims is aimed at the aspirational end of the market
and has 8 locations whilst Mint is targeted more towards
the "true gamers" and has 20 sites.
The
London clubs have retained their separate identities
with the exception of the London Mint which is being
branded in line with the company wide Mint branding.
Genting
Casinos clubs offer visitors a complete night out
with restaurants, bars, entertainment, extended openings
hours between noon and 6am, as well as gaming.
Genting
UK also offer an online casino and poker room, GentingCasino.com
which offers over 100 casino games including classics
such as Roulette and Blackjack, as well as being part
of one of the world’s biggest poker communities.
The site is operated by Genting Alderney Limited and
complies with the stringent licensing codes operated
by the Alderney Gambling Control Commission.
Since
entering the British casino market in 1976, Genting
has pursued a policy of acquisition from both private
casino operators and public companies. The Group has
improved these sites through the introduction of better
management and systems as well as extensive refurbishment,
extensions and brand new properties.
In
a number of cases, casinos have been relocated to
larger, purpose-built premises - for example, Mint
Leith in Edinburgh and Circus in central Manchester.
Genting's
Circus Casino at Star City in Birmingham, which was
opened in November 2003, is one of the largest in
the UK with a 70,000 sq ft site arranged over several
floors, state of the art facilities including gaming
tables, slot machines and automated games, and employs
around 220 people.
Genting
UK is committed to proactively managing and minimising
its environmental impact through the adoption of a
corporate strategy. As a minimum Genting UK will meet
all legislative environmental targets and will endeavour
to adopt best practice wherever practicable. A copy
of our environmental policy can be found below.
Genting
UK plc is a wholly owned subsidiary of Genting Singapore
plc, part of Genting Berhad, a leading, $US13bn market
cap, Malaysian multi national company.
The
Genting Story
When
it comes to the Genting story, most Malaysians will
recognise it as synonymous with the rise of its namesake
hill resort,Genting Highlands Resort. Many though
may not have truly appreciated the mammoth task involved
in its construction and the vast resources and reserves
mobilised to ensure what has proven today to be an
unprecedented success in resort development.
Looking Back with Pride
The idea of a hill resort was chanced upon by late
Tan Sri Lim Goh Tong amidst the crisp air of Cameron
Highlands in 1964. Tan Sri Lim was then working on
a hydro-electric power project at the popular hill
resort, patronised mostly by British colonials seeking
cool refuge from the tropical heat, when he foresaw
a prosperous Malaysia of the future desiring a cool
mountain holiday resort within the reach of all Malaysians.
The
Challenges
A study of the maps and Kuala Lumpur’s vicinity
located the ideal site - the 1,800-metre Gunung Ulu
Kali, just 58 km from Kuala Lumpur. Amidst the dense
virgin tropical jungle and rugged terrain, the task
to transform a remote mountain into Malaysia’s
premier holiday destination seemed impossible…
but not for Tan Sri Lim.
The
Mammoth Task Begins
Setting up a private company called Genting Highlands
Berhad on 27 April 1965, with the late Tan Sri Haji
Mohammed Noah bin Omar, Tan Sri Lim successfully obtained
approval for the alienation of 12,000 acres and 2,800
acres of land from the Pahang and Selangor State Government
respectively between the years 1965 and 1970.
On
18 August 1965, a technical and construction team
began the herculean task that would take four years
to complete the access road from Genting Sempah to
the peak of Gunung Ulu Kali.
To
ensure the sound and prompt construction of the hotel-cum-resort,
Tan Sri Lim devoted all of his time, capital and resources,
including the reserves of his family company, Kien
Huat Berhad towards the making of this "dream
resort".
The Beginning
On 31 March 1969, the late YTM Tunku Abdul Rahman,
Malaysia’s first Prime Minister graced the official
laying of the foundation stone for the company’s
pioneer hotel, the then Highlands Hotel, marking the
completion of the access road to Genting Highlands
Resort.
The
Prime Minister was impressed that the private sector,
without the assistance of the Government, could develop
a mountain resort for the enjoyment of all Malaysians;
a gaming licence was suggested to help accelerate
the development of this remote area.
In
1971, the first hotel at Genting Highlands was successfully
completed and was then named Highlands Hotel (now
renamed Theme Park Hotel).
The
Development - Genting Highlands Resort
Since the opening of the first hotel in 1971, Genting
Highlands Resort continued to grow from strength to
strength. The development of the area continued to
this present day to enhance Genting Highlands Resort
as the premier holiday destination in the region while
ensuring that the natural beauty of the rain forest
is maintained.
To
date, Genting Highlands Resort has five hotels (namely
Genting Hotel, Highlands Hotel, Resort Hotel, Theme
Park Hotel and First World Hotel) and two apartment
blocks (Ria and Kayangan Apartments) at the hilltop
and Awana Genting Highlands Golf and Country Resort.
Together
with integrated world-standard entertainment facilities
encompassing various leisure, indoor and outdoor theme
parks and gaming facilities, Genting Highlands Resort
has become the "City of Entertainment" and
Malaysia's Premier Resort.
In
1997, Genting Highlands Resort further boosted its
facility attraction with Genting Skyway cable car
system that provides a 3.38 km transport to the hilltop.
Genting Skyway is also recognised as the "World's
Fastest Mono Cable Car System" with a maximum
speed of 21.6 km per hour and the "Longest Cable
Car in Malaysia and Southeast Asia".
The Expansion - Genting Group
Genting Group, founded by Tan Sri Lim Goh Tong and
with Tan Sri Lim Kok Thay as its Chairman and Chief
Executive, has since expanded and diversified from
its initial hotel and resort activities to plantation,
power generation and oil and gas exploration and production.
Today,
Genting Berhad is a leading multinational corporation
in Malaysia that has constantly been acknowledged
by various organisations for its exemplary leadership
and management. Genting Berhad was acknowledged as
the No.1 Leading Company in Malaysia for 10 years,
i.e. in 2004 and from 1994 to 2002 by The Asian Wall
Street Journal 200 (formerly Far Eastern Economic
Review 200). Genting Berhad was also rated No.1 in
Malaysia and No.2 in Asia for Overall Best Managed
Company for the Decade by Asiamoney.
The
Passing of a Great Man
Sadly, our Founder Tan Sri Lim Goh Tong passed away
peacefully on 23 October 2007 and was laid to rest
at Gohtong Memorial Park on 29 October 2007. He will
be greatly missed by the management and staff of the
Genting Group.
"Once
the goals have been clearly defined, with the greatest
amount of determination and hard work, one can conclusively
realise one's goals."
It
may seem difficult but it is important that all citizens
across the world stay updated with Internet Betting
laws. Below you will find what we understand as the
laws to online betting in certain areas of the world.
US
Internet Betting Laws
The United States of America has the most ambiguous
online casino laws in the world. They have passed
laws to ban banks from allowing transactions that
are deemed illegal, but no one has any idea what the
United States considers legal or illegal. Currently,
all US citizens are advised to check with local laws
before gambling online. Even the online casinos aren't
sure if you should be allowed to bet at their site.
Some companies don't allow US players, others allow
some US players, and some could care less where a
player is from.
UK
Internet Casino Laws
The UK is the first major country to completely legalize
and regulate online gambling. The Gambling Act of
2005 was passed while Prime Minister Tony Blair was
in office. Blair had a flair for expanding gambling,
but when Gordon Brown took over as Prime Minister
in the UK he provided a tax structure that was so
high that most online casino companies were not urged
to relocate to England. Today, all web branded casinos
that are in a UK approved jurisdiction are legal for
UK citizens to play at.
International
Online Betting Laws
As the world gets deeper into the 21st century and
the Internet becomes a more common cultural tool more
and more countries are realizing the reality that
is Internet gambling. Currently, Spain, Italy, Germany
and other countries have moved to legalize and regulate
the industry, while few still look to protect their
homeland gaming monopolies. It is extremely important
to check all local, state, and federal laws before
participating in any online gambling activities.
