Sale of shares in Malaysia-based casino firm raises £260 million
Posted by Gavin Smith on 02 Jun 2009 at 10:06
Family trusts for a late Malaysian Chinese businessman have placed out their direct stake of shares in a resort and casino firm to raise S$615 million (£260 million).
Malaysian Star online reports the trusts of the late Tan Sri Lim Goh Tong carried out the move, which represented 8.8 per cent of Genting Singapore Plc at 72 cents a share.
According to the site, following the sale the family's interest in Genting Singapore is via Genting Bhd, which owns 54.4 of the Singapore firm.
Genting Singapore released an announcement to the Singapore exchange and said Golden Hope Limited and Lakewood Sdn Bhd, which are held by discretionary trusts set up for certain members of the late businessman's family, sold the shares over the last 10 days.
Genting UK is the largest casino operator in Britain and Genting Singapore is building Resorts World at Sentosa, Singapore.
According to the site, the firm said the 'divestment' of the direct stakes of Golden Hope and Lakewood simplifies the share holding and "broadens the institutional shareholding base" of Genting Singapore.
Genting Singapore shares fell 15.5 cents on the Singapore Exchange to 71 cents following the move.
Malaysian Star Online said the move has led to a "good price" for the family to sell the shares as they had been at their highest point in two years.
According to the site there is now word that the Lims raised the money as part of a plan to buy MGM Mirage's 50 per cent stake in MGM Grand Macau, which is a partnership with Pansy Ho, daughter of famous casino businessman Stanley Ho.
In May MGM Mirage was told by New Jersey gaming regulators that its partner in the Macau venture was unsuitable.
Malaysian Star Online also reported it may be tricky for Genting Singapore to secure the rumoured stake as the firm was quizzed by officials in Singapore when it bid for integrated resort (IR) project in Singapore, specifically on a planned joint venture with Mr Ho.
The firm then pulled out of the joint venture before it sealed the integrated resort scheme.
This has led to the speculation over the raised Lim family cash and that it will be used for a direct bid for MGM Grand Macau instead of a bid through Genting Singapore.
