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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
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