Brokers pitch Star Entertainment stake to Genting

At least one investment Bank is understood to have pitched Malaysia’s Genting Group on a potential block trade of its stake in Star Entertainment Group this week, said sources quoted by the Australian Financial Review.

Genting, owned by Malaysian gaming mogul KT Lim, holds a 6.6 percent stake in Star Entertainment. It has been approved to purchase up to 23 percent.

Earlier this month, Star Entertainment Group reported strong earnings growth continued in its full year 2016, with good revenue growth across all lines of business.

In a filing to the Australian Stock Exchange, the casino operator reported normalized net profit after tax of A$241.3 million ($183.9 million), up 23.4 percent, and normalized EBITDA of A$556 million, up 14.1 percent.

The operator’s Sydney and Queensland casino revenues were the key drivers of the full year 2016, with group domestic revenues up 5.8 percent year-on-year. International VIP rebate business volume also went up by 7 percent year-on-year, along with an improved win rate in fiscal year 16H2 of 1.5 percent.