Genting Hong Kong has sold its remaining stake in Australia-listed Star Entertainment in a block trade for AU$235.2m , (US$190m) the leisure and entertainment company announced last Friday. Genting has offloaded its 5.6 percent stake to realise a profit and would use the proceeds as general working capital and capital expenditure for the group.
Genting sold 46.4 million shares in Brisbane-based Star at AU$5.07 in a block trade, earning it a profit of AU$67.5m on its investment. It said proceeds could “fund new investments … should suitable opportunities arise.”
Genting, which is controlled by Malaysian billionaire KT Lim had regulatory approval to increase its stake in Star to around 23pc but had decided not to lift its investment.
Star yesterday declined to comment, adding notification of any changes to substantial shareholdings in the company will be via ASX announcements.”
Star shares climbed 3.52pc on Friday to close at AU$5.30. They have lost 13pc since last October on concern the arrest of employees from competitor Crown Resorts in China would impact on the casino operator’s lucrative high-roller market in Asia.
The company flagged earlier this year that its crucial international VIP business would be impacted in the second half of the financial year by concerns over the arrests.
The move comes as some analysts point to a possible combination of Star and Crown. Citi this week said was not ruling out the prospect that Crown and Star will eventually merge, saying there was strategic merit to such a deal.