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SINGAPORE: Genting International will pay $255m (US$168m) to acquire Star Cruises' 25 percent stake in a multi-billion-dollar gaming project in Singapore, Star Cruises said Wednesday.
The acquisition, which will give Genting full ownership of the Resorts World at Sentosa (RWS) integrated resort (IR), was announced on March 4 but the value of the deal had not been worked out at that time.
Both parties, part of Malaysian conglomerate Genting Berhad, said the move by Star Cruises to withdraw as a partner from the IR project was to meet Singapore requirements in applying for a gaming licence.
Singapore had sought clarification from Genting and Star Cruises since a tie-up announced in January with Macau casino tycoon Stanley Ho.
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 were issued.
"It is essential for RWS to be in a position to meet the suitability requirements necessary for the application of a casino licence at the appropriate time in the future," Star Cruises said in a statement filed with the Singapore Exchange.
On completion of the deal, Star Cruises "will cease to have any interest in RWS and the Sentosa Integrated Resort," it said.
Genting International said in a separate statement late Tuesday that the move will allow the firm "full control over the IR project and this will expedite decision making and increase the flexibility" in running the project.
The Casino Regulation Division of Singapore's Ministry of Home Affairs had said in late February that the Genting-Star Cruises alliance were not guaranteed a casino licence even if they signed a development agreement.
Genting and Star Cruises won the bidding last year to build Singapore's second integrated casino resort complex on Sentosa island.
They have committed to invest $5.2b in the project, which is to include a Universal Studios theme park and the world's largest oceanarium, as well as gaming facilities.
Star Cruises and Genting International shares both traded lower Wednesday.
At the mid-day break, Genting International shares were 0.005 lower at 0.820.
Star Cruises was down US$0.025 at 0.290. - AFP/yy
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