Genting sells stake in The Star casino group

Genting Group, the Malaysian gambling and leisure conglomerate, has sold its 5.6% stake in Australian casino operator The Star Entertainment Group Ltd.

The company confirmed its entire 46 million shares were sold for A$235.2m in a block trade, with many reports suggesting the buyer to be Perpetual Investment Management.

The overall sale price gave Genting a net gain of $67.5m on its investment, which was initiated five years ago.

Genting said investment bank UBS conducted the block trade which left it with no remaining stake in Brisbane-based Star, which owns The Star Sydney, The Star Gold Coast and Queen’s Wharf Brisbane.

Genting said in a statement it sold the shares to realise a profit and would use the proceeds as general working capital and capital expenditure for the group. It could also “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 23% but had decided not to lift its investment.

Shares in The Star rose by 2% on news of the deal.

Perpetual, which owned 11.6% of Star in February, has regulatory approval from New South Wales and Queensland's Liquor and Gaming regulators to go to 15%.

Related article: Genting Singapore cuts net losses