KUALA LUMPUR - Genting
International Plc, a subsidiary of Malaysia's Genting
Berhad, has agreed to set up a 50:50 joint venture with
the United Kingdom's largest casino operator, Stanley
Leisure.
The joint venture, to be known as
Stanley Genting Casinos Limited (SGCL), will develop
regional casinos in the UK, Genting International said
in a statement to Bursa Malaysia.
Under the
agreement, Stanley Leisure will transfer its subsidiary,
Stanley Casinos (Leeds) Limited, which has the benefit
of an option to acquire certain land adjacent to Elland
Road in Leeds, UK, to SGCL for cash.
Genting
International, a 64.3% owned subsidiary of Genting
Overseas Holdings Ltd (GOHL), which in turn is wholly
owned by Genting Berhad, has agreed to subscribe for
shares in SGCL for RM38.3 million (US$10.1 million) in
cash.
As part of the agreement, Genting
International has raised its stake in London-listed
Stanley Leisure.
Genting International has
acquired 8 million shares of Stanley Leisure from its
chairman, Lord Leonard Steinberg, for RM3,200 per share.
With the 3.6 million shares held by GOHL prior
to this purchase by the company, Genting Berhad and its
subsidiaries now hold 11.62 million ordinary shares,
representing 9.1% of Stanley Leisure's issued share
capital.
Genting International also
conditionally agreed to sell a 50% interest in Maxims
Casino in London, which is currently being acquired by
the company's indirect, wholly owned subsidiary,
Coastbright Limited, to Stanley Leisure.
The
sale consideration for Maxims Casino will be between
RM41.7 million and RM48.8 million, to be determined
following due diligence by Stanley Leisure, and to be
satisfied by the issue of up to 1.5 million new ordinary
shares of Stanley Leisure at RM3,200 per share.
The Genting Group has interests ranging from
leisure and hospitality to power generation,
plantations, property, paper and packaging as well as
oil and gas.
Stanley Leisure is the UK's largest
casino operator with 41 casinos, including Star City in
Birmingham, the UK's largest casino.
(Asia
Pulse)
Nov 25, 2004
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