Echo Entertainment suitor Genting Group, controlled by Malaysian billionaire KT Lim, may be close to winning New South Wales government approval to boost its 6.6 per cent stake in the owner of Sydney's Star casino.
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The pending decision paves the way for Echo to launch a renewed fight against James Packer's Crown Resorts, which will open Sydney's second casino in 2019 at Barangaroo on the Darling Harbour shoreline and is challenging Echo for the rights to build a new Brisbane casino resort.
In 2012 Mr Lim applied to the NSW Independent Liquor and Gaming Authority (ILGA) to increase its stake above the legislated 10 per cent cap for any one shareholder.
The Daily Telegraph reported the ILGA was due to give its approval to Genting's request on Wednesday.
However, that decision has itself been delayed as Genting is currently seeking investors to buy a 17 per cent stake in the company, recently offloaded by Asian leisure group Resorts World.
"The Authority is working to bring the investigation to a conclusion as soon as it is in a position to do so," the ILGA told The Daily Telegraph. "There have been no public submissions on the application."
Asked last week about Genting's plans to increase its stake in Echo, The Star managing director Greg Hawkins said there had been a supportive shareholder but added Genting's intentions were a matter for Echo's board to comment on.
The Genting casino empire, which control's Asia's second-biggest gaming company, Genting Singapore, emerged as a 9.7 per cent shareholder in Echo in June 2012. Mr Packer also held a 10 per cent stake in Echo sparking speculation he was in talks over a potential alliance with Mr Lim for Echo. However, Mr Packer subsequently sold his stake in Echo in May 2013 to instead focus on advancing plans for its Crown Sydney proposal which is scheduled to open in late 2019, ending Echo's monopoly in the Sydney market.
