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SINGAPORE: Shares of Genting International dropped 9 percent on Thursday on reports that it had been quizzed by the government over its partnership with Macau casino mogul Stanley Ho.
This, after Genting and Star Cruises said they were taking a majority stake in an upcoming casino and hotel project in Macau, and Star Cruises was selling a minority stake to a group of investors led by Ho.
Shares of Star Cruises were also hurt - down 7 percent in Singapore and 6 percent in Hong Kong.
Barely 2 months after winning the Sentosa project, there have been reports that Genting has been queried by the Singapore authorities over its plan to sell up to a 7 percent stake to Macau casino mogul Stanley Ho and two other unnamed investors.
As part of the tender process for the integrated resorts, bidders had to agree to a probity check, and in weighing the various bids, authorities also took into account the record of the partners.
There has been talk about possible links between Stanley Ho and the triads in Macau, although these have never been confirmed.
Despite Thursday's stock market reaction, parties familiar with the bidding process tell Channel NewsAsia that the government's query is part of the probity checks built into tender process right from the get-go.
These checks are allowed for under the Casino Control Act, where the integrated resort operators, their shareholder and partners will be subjected to perpetual and on-going checks.
Experts say the government is most likely questioning Genting over Stanley Ho's level of involvement in the Sentosa integrated resort, and the contract terms he has with Genting.
They suggested several possible outcomes - which range from the authorities accepting Ho's involvement, to directing Genting to terminate the contract with him.
In the worse case scenario, the licence could be withdrawn - but this is seen as unlikely. - CNA /dt
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