Genting Bhd (RM9.02/share) - Sells Echo stake

Genting Bhd’s unit, Genting Singapore plc, is selling 39.6 million shares in Echo Entertainment, three months after taking a stake in the Australian casino company. The sale has quashed speculation that Genting Singapore was preparing a takeover for the RM9.6bil gaming concern, which runs Sydney’s The Star casino and Jupiters Hotel & Casino on the Gold Coast of Australia.

Genting apparently holds a 4.9% stake in Echo and was in a two-way battle for control with local billionaire James Packer. Genting Singapore told the island state’s stock exchange that it has entered into an agreement with Citigroup Global Markets Australia Pty Ltd to dispose of the company’s entire 4.8% stake in the Australian gaming entity.

The sale comes after a review by the company to rationalise its investment portfolio, it told the Singapore stock exchange. It added that the Echo shares will be sold on the Australian stock exchange for A$3.99 (RM12.74) a share, and will be fully underwritten by Citibank. – Business Times