Jan 16 2007
In a latest breaking financial news reported by Straits Times Singapore, Macau casino mogul Stanley Ho is in the process to buy a stake in Star Cruises, a cruise and gaming company controlled by Malaysia’s Genting Group (KLSE : GENTING, stock-code 3182).
It was reported that Stanley is invited to buy up to 10 percent of Singapore-listed Star Cruise Ltd (SIN : S21), which in turn is expected to secure rights from the gaming magnate to build and operate a casino in Macau. Pricing details of the investment into Star Cruises are not available.
Shares in Star Cruises have been suspended since Friday. The stock had surged by a third to 38.5 US cents late on Thursday before the suspension. The deal is part of a plan by Star Cruise Ltd (SIN : S21) and Genting International (SIN : G13), both part of Malaysia’s gaming mogul Lim Goh Tong’s empire, to raise funds to develop a $3.4 billion casino resort on Singapore’s Sentosa island.If the above plan goes accordingly, it’ll be a win-win business proposal for both Stanley and Genting Group. After the liberalization of casino business in Macau with the entry of foreign players such as Las VegasSands (NYSE : LVS, stock), MGM Mirage (NYSE : MGM, stock) and Wynn Resorts (Nasdaq : WYNN, stock) Stanley no longer monopolize the lucrative “sure-win” business. With tons of cash, Stanley has been looking for expansion routes for quite some time. As for Genting Group, it still has not establish a footing at it’s rival land in Macau but with this swapping of business interest, Genting has sure put another dot into its’ casino map globally.
# TIP: I’m bullish on Genting & Resort stock with this piece of development together with the proposal by Genting and Resort for a 5-for-1 share split which I blogged yesterday.
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January 16th, 2007 by financetwitter
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