odds on crown bid for echo improve, page-2

Crown gets go ahead to lift Echo stake
Date May 10, 2013 - 5:23PM (0) Read later Colin Kruger
Colin Kruger
Business Reporter

The NSW casino regulator has given the green light to James Packer’s Crown to lift its stake in Echo Entertainment.

Crown applied in February last year to lift its stake in the rival casino operator from 10 per cent to 25 per cent.

However, the Independent Liquor and Gaming Authority (IGLA) will only allow Crown to lift its stake to 23 per cent, not the requested 25 per cent.

The ILGA decided on 23 per cent as a 25 per cent shareholding would trigger change of control provisions in US securities issued by Echo last year.

Advertisement The IGLA said Friday evening it has approved Crown and its associates ‘‘becoming close associates of The Star’’ paving the way for the company to lift its stake above the 10 per cent ownership cap in The Star's owner, Echo.

Crown is seeking its own casino licence to operate a resort casino at Barangaroo - independently of Echo - but has acquired a 10 per cent stake with the intention of pursuing the alternative proposal of using Echo's licence for the proposed casino.

Echo lodged a rival proposal recently that would block Mr Packer's Barangaroo project.

The ILGA is also considering an application from another Echo shareholder, Genting, to lift its 5.22 per cent stake to as much as 25 per cent.



Read more: http://www.theage.com.au/business/crown-gets-go-ahead-to-lift-echo-stake-20130510-2jd58.html#ixzz2Ssa3BBCz