The Genting Organization, a Malaysian conglomerate specializing in gaming and entertainment, has divested its 5.6% holding in the Australian casino operator, Star Entertainment Group Limited.
The organization confirmed that its entire 46 million shares were sold in a single transaction for A$235.2 million. Numerous reports indicate that Perpetual Investment Management was the acquiring entity.
The total proceeds from the sale yielded a net profit of $67.5 million for Genting on its investment, which commenced five years ago.
Genting stated that investment bank UBS facilitated the block trade, leaving the company with no remaining interest in Brisbane-based Star Entertainment Group, which owns The Star Sydney, The Star Gold Coast, and Treasury Brisbane.
In an official statement, Genting indicated that the sale of the shares was intended to realize profits and would be allocated towards the group’s operational funds and capital expenditures. It also stated that the funds could be utilized to “finance new investments… should suitable opportunities present themselves.”
Genting Group, under the leadership of Malaysian tycoon Lim Kok Thay, had obtained regulatory authorization to increase its stake in Star Entertainment Group to approximately 23%, but ultimately decided against expanding its investment.
Following the announcement of the transaction, shares in Star Entertainment Group experienced a 2% increase.
The enduring firm, which possessed an 11.6% share of Dream Cruises in February, has received approval from the liquor and gambling authorities of New South Wales and Queensland to expand its ownership to 15%.
Connected news: Genting Singapore’s net deficit shrinks
Sign up for the iGaming newsletter.