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  Today Online 28 Mar 07
Genting to pay $255 million for Star Cruises' IR stake
Tan Hui Leng

Business Times 10 Mar 07
Genting may not have done enough over Stanley Ho deal
Suitability checks will continue even after casino licence has been issued: regulator
By Wee Li-en

Channel NewsAsia 9 Mar 07
Casino operators must clear suitability checks even after licence issued
By Loh Kim Chin

Channel NewsAsia 5 Mar 07
Star Cruises' pull-out from Sentosa IR may not be enough for Genting
By Johnson Choo

Channel NewsAsia 4 Mar 07
Star Cruises withdraws from Singapore gaming resort project

Today Online 5 Mar 07
With buyout of Star Cruises stake, Sentosa IR is 100% Genting's
Christie Loh

Business Times 5 Mar 07
Star Cruises to pull out of Sentosa IR deal
Move leaves Genting Int'l in full control

(SINGAPORE) Genting International said sister firm Star Cruises would withdraw from the S$5.2 billion Sentosa integrated resort deal, leaving the gaming company in full control.

Continuing its attempts to placate Singapore authorities unhappy about its links with Macau gambling tycoon Stanley Ho, Genting International said that it planned to buy Star Cruises' 25 per cent stake.

Star Cruises and Genting International are both controlled by Malaysia's Lim family through the Kuala Lumpur-listed gaming group Genting Bhd.

On Saturday, Genting International said that it would divest its share in a proposed partnership with Mr Ho to give Star Cruises the entire 75 per cent stake in a Macau hotel casino to be run by him. A previous deal had given a group of investors including Mr Ho a 6.99 per cent stake in Star Cruises.

Both moves are part of an anticipated unravelling of the two firms' tie-up with Mr Ho, which had upset Singapore authorities.

Last Tuesday, Singapore's casino regulator said that Genting International and Star Cruises - which won approval to build a casino resort in Singapore in December - would be subject to 'suitability checks', along with their business associates, before being awarded a casino licence.

Star Cruises' move to relinquish its stake in the Singapore project will allow it to focus on Macau, where casino revenues amounted to US$7 billion last year, surpassing those generated along the Las Vegas Strip.

Mr Ho had a monopoly on casino gambling in Macau for nearly four decades until it was opened up to other players in 2002. Genting International said it had hired brokerage firm CIMB-GK Securities as its financial adviser. - Reuters

Channel NewsAsia 4 Mar 07
Star Cruises withdraws from Singapore gaming resort project

SINGAPORE: Star Cruises, which was to partner Malaysia's Genting International in building a multi-billion dollar integrated resort in Singapore, has pulled out from the project, a statement said Sunday.

The statement by Genting said the withdrawal of Star Cruises is to enable the Malaysian gaming company to meet the criteria set out by the Singapore government for the application of a casino licence.

Star Cruises will sell its 25 per cent stake in the S$5.2 billion (US$3.4 billion) Resorts World at Sentosa project to Genting. Both parties are in talks to work out the value of the 25 per cent stake, the statement said.

"The proposed acquisition will give GIPLC (Genting) full control over the Sentosa IR (integrated resort) project. This will assist GIPLC in the management process of casino application in due course," Genting said in the statement. "It will also enable GIPLC to focus its current management resources and interest on the Sentosa IR project."

The announcement of Star Cruises' withdrawal from the Singapore project followed a statement Saturday that Genting International is pulling out of a tie-up with Macau casino tycoon Stanley Ho in the former Portuguese colony.

Genting's tie-up with Ho has raised concerns whether it will be awarded a gaming licence for the Singapore project. The Casino Regulation Division of Singapore's Ministry of Home Affairs said last week that Genting and Star Cruises were not guaranteed a casino licence even if they signed a development agreement to build the integrated gaming resort on Sentosa.

"The signing of the development agreement and the issuance of a casino licence are two separate matters," the regulator said in a statement on 27 February.

Singapore has been seeking clarification from Genting and Star Cruises over the deal with Ho after announcements of the tie-up with the Macau casino tycoon was made public.

The tie-up with Ho would have given him and a group of investors a 6.99 per cent stake in Star Cruises. In return, Star and Genting International were to get stakes in a new boutique hotel and casino to be operated by Ho's Sociedad de Jogos de Macau.

The Ministry of Home Affairs had told Genting and Star Cruises it would conduct checks "to ensure that the consortium meets the suitability requirements" before a licence was issued.

The two firms - part of Malaysian conglomerate Genting Group - signed a development agreement Thursday to proceed with construction of the S$5.2 billion (US$3.4 billion) project, including a Universal Studios theme park and six hotels offering more than 1,800 rooms.

Genting-Star Cruises won the right to build Singapore's second gaming resort complex in December, seven months after Las Vegas Sands won a bid to build the city-state's first casino project in the Marina Bay business district.

Las Vegas Sands has also not been issued a casino licence, although it has started construction on the project, the Ministry of Home Affairs said. - AFP/yy

Today Online 5 Mar 07
With buyout of Star Cruises stake, Sentosa IR is 100% Genting's
Christie Loh christie@mediacorp.com.sg

DAYS after getting a no-nonsense warning from on high, Genting International has crafted a shrewd plan to bolster its bid for one of Singapore's first casino-operating licenses. Simply, Genting will fully own the Sentosa integrated resort (IR) now that its sister company, Star Cruises, is exiting the Singapore project to continue a Macau casino partnership with tycoon Stanley Ho.

This effectively distances Genting from the 84-year-old billionaire who has been accused--without proof--of triad links. The lucrative Macau deal still stays within the Genting family.

The two-step approach involved Genting first selling its 25-per-cent stake in the Macau project to Star Cruises, followed by a buyout of its sister firm's 25-per-cent interest in the IR.

"This will assist (Genting) in the management process of casino application in due course," Singapore-listed Genting said in a statement yesterday. CIMB-GK Securities will advise on how much the IR stake will be sold for.

The manoeuvres hardly surprised. "Genting International is trying to address the concerns of the Singapore Government," Merrill Lynch analyst Sean Monaghan was quoted in a Bloomberg report.

Last Tuesday, the Ministry of Home Affairs sent a strong signal by saying that Genting did not automatically qualify for the casino license just because it had won the right to build the $5.2-billion IR.

Observers read the public statement as a show of the Government's uneasiness over Mr Ho owning a 7-per-cent stake in Singapore-listed Star Cruises through a tie-up with the leisure company and Genting.

The trio had planned to build a Macau boutique hotel cum casino called Resorts World--the same name as the Sentosa IR. Now Genting International is out of the picture.

The latest development "is probably the easiest and neatest solution to deal with the issue of Stanley Ho", said an analyst who declined to be named. Said NetResearch Asia's managing director Kevin Scully:

"It is good for both companies' stocks because it takes away the overhang from the uncertainty." But he feels that Star Cruises' share price could gain more from the news because "the market probably feels the Macau casino has more revenue and profit potential".

His prognosis is based on the fact that the announcement of the Macau project gave Star Cruises' stock price a much bigger boost than the one on the Sentosa IR did. Also, there is nothing to prevent Star Cruises from offering cruise-and-land packages to bring holidaymakers here.

Genting's backers have deep pockets and may choose to go it alone. But if it wants to rope in a new partner, it will have to be careful. The partner will have to be acceptable, said Mr Scully.

Channel NewsAsia 5 Mar 07
Star Cruises' pull-out from Sentosa IR may not be enough for Genting
By Johnson Choo

Genting shares rallied early Monday morning following the announcement over the weekend that Star Cruises had pulled out from the integrated resort project at Sentosa. The counter later reversed course - to close 3 per cent lower at 80.5 cents.

The move by Star Cruises is aimed at addressing concerns about the possible involvement of gaming tycoon Stanley Ho in the Sentosa project.

This has been the most drastic move taken by Genting so far to distance itself from gaming tycoon Stanley Ho. Under a deal announced last month, Mr Ho is part of a group of investors who are taking a 6.99 per cent interest in Star Cruises. In return, Genting and Star Cruises would take a stake in an upcoming project in Macau managed by Mr Ho.

Singapore authorities were quick to seek clarification over the deal. And last week, they made it clear that Genting-Star would not automatically get the casino licence for Sentosa, despite getting the right to build the resort.

Over the weekend - Genting sold off its 25 per cent stake in the Macau project to Star Cruises. And Star withdrew from the Sentosa project - leaving Star to focus on Macau, and Genting on Sentosa.

The move did not come as a total surprise - but some industry watchers have described it only a half-hearted attempt to placate Singapore concerns. On the one hand, Genting wants to ensure it can pass the strict probity checks, and be granted a casino licence here. And on the other, it still wants to keep its interest in Macau.

Analysts pointed out that the Casino Control Act gives the authorities wide-ranging powers to check on practically any relationship they so choose. This means in the case of Sands, probity checks could go all the way to the US to verify all of the operator's business interests and its associates in any part of the world.

In the case of Genting, the problem appears to be Stanley Ho's 6.99 per cent interest in Star Cruises and his unproven links to the triads in Macau. Sources say the authorities' main interest is in ensuring that no undesirable persons or entities are bank-rolling the Singapore casinos or have an undue influence in their operation.

Even after a casino licence has been approved, there's a five per cent limit on the equity an undesirable entity can acquire through the open market. Beyond this the authorities can direct the said entity to dispose of its interest to a permitted level or risk losing the casino licence.

The integrated resort operators can only apply for the casino licence after at least 50 per cent of the project has been completed. - CNA/yy

Channel NewsAsia 9 Mar 07
Casino operators must clear suitability checks even after licence issued
By Loh Kim Chin

SINGAPORE: The Home Affairs Ministry reiterates that casino operators in Singapore's two integrated resorts will have to clear suitability checks. Such checks are a continuing requirement even after a casino licence is issued, it adds.

The comment came just days after the Genting-Star Cruises consortium, which won the Sentosa project, announced changes to accommodate their interests in both Singapore and Macau.

The changes came after the Singapore government said that although Genting had won the bid to build the Sentosa integrated resort, that did not automatically qualify it for a licence to operate the casino. Genting International then withdrew from its partnership with tycoon Stanley Ho in Macau, while partner Star Cruises pulled out from the project in Singapore.

Genting-Star Cruises won the bid to build the Sentosa resort last year but came under the spotlight last month when it announced a deal in Macau. The deal would give a group of investors, including Stanley Ho, a 7% stake in Star Cruises. There have been concerns over Mr Ho's possible involvement in the Sentosa project.

In its latest statement, the Home Affairs Ministry said that all the bidders of the two integrated resort projects were fully aware of the requirements for probity checks on their management, shareholders, and other associates.

"Suitability checks are a standard practice in the casino industry to ensure that only suitable persons manage and control the casino. Singapore's practice is consistent with that of the leading casino jurisdictions internationally, for example, the United States and Australia," it said.

"Under the Singapore Casino Control Act, all casino operators are subject to such probity checks," the statement said. - CNA/ir

Business Times 10 Mar 07
Genting may not have done enough over Stanley Ho deal
Suitability checks will continue even after casino licence has been issued: regulator
By Wee Li-en

(SINGAPORE) Efforts by Genting to distance its $5.2 billion Sentosa casino resort project from gambling tycoon Stanley Ho may not be enough to ease concerns of the authorities, judging by a government statement yesterday.

The Casino Regulation Division of the Ministry of Home Affairs said yesterday that the management, shareholders and 'other associates of the casino operators' are subject to checks which will continue even after a licence is issued.

'Suitability checks are a standard practice in the casino industry to ensure that only suitable persons manage and control the casino,' the regulator said in a statement released after markets closed.

Last month, Mr Ho and associates acquired a stake in Star Cruises, a sister company of Genting International (GIL) and which has a 25 per cent stake in GIL's Resorts World at Sentosa. In return, Mr Ho sold a 75 per cent stake in a hotel-casino project in Macau to Star Cruises and GIL.

This displeased the authorities, which said they would conduct suitability checks on Genting group's new shareholders, including Mr Ho, before deciding whether to give Star Cruises and GIL a casino licence for Sentosa. In what was seen as an attempt to protect its stake in the Sentosa project, GIL said that it would pull out of the Macau hotel-casino project and that Star Cruises would pull out of the Sentosa integrated resort project.

The speculation is that Genting and Mr Ho are also finalising a plan to have him dispose of his 7 per cent stake in Star Cruises which he shares with his associates. However, Star Cruises still has a 75 per cent stake in the Macau casino project linked to Mr Ho. Star Cruises and GIL also share the same parent - Malaysia-listed Genting Berhad.

Last month, Deputy Prime Minister and Minister for Home Affairs Wong Kan Seng said in Parliament that 'shareholders and business associates' of casinos can also be 'possible avenues' that criminals can exploit to infiltrate casino operations.

He said that under the Casino Control Bill, the regulator will be empowered to 'exercise control over such relationships'. DPM Wong also said that a new statutory board called the Casino Regulatory Authority will be established under the supervision of the Ministry of Home Affairs to regulate casinos here.

Star Cruises and GIL signed a development agreement with Sentosa Development Corp earlier this month and paid the $605 million land price for the IR in a move that formalises their commitment to the project.

Today Online 28 Mar 07
Genting to pay $255 million for Star Cruises' IR stake
Tan Hui Leng

A MONTH after it received a sharp rebuke from the Government, Genting International has finalised details of its move to take complete control of the Sentosa integrated resort (IR) project.

In a statement late yesterday, Genting said it will buy over sister firm Star Cruises' 25-per-cent stake in the project for $255 million to meet licensing requirements. With Genting having full control over the IR project, it would "potentially help simplify (Genting's) application process for a casino licence for the IR project in due course", it said. Having full control of the project would "expedite decision making" for itself, it said, adding that Sentosa Development Corporation had given its blessing to the acquisition earlier this month.

The announcement is the latest in a saga that started last month, when the Ministry of Home Affairs--in a rare public statement on the IR--said that Genting did not automatically qualify for a casino license just because it had won the right to build the $5.2-billion project.

At heart, observers believed, was the Government's uneasiness over casino tycoon Stanley Ho's indirect stake in the Singapore project, via a tie-up with Star Cruises and Genting in Macau. The 84-year-old billionaire has been accused--without proof--of triad links.

Shortly after the rebuke, Genting said it was pulling out of the Macau project and selling its stake to Star Cruises. In return, Star Cruises will sell its 25-per-cent stake in the Sentosa integrated resort to Genting, creating a cleaner ownership structure for the casino project.

The value of the Singapore stake is based on the $175 million Star Cruises has invested and an additional $80 million for expenses in the bidding process, Genting said yesterday.

The company also said it is "comfortable" with financing the entire project. The purchase is conditional upon the approval of shareholders of both companies.
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