SGR - The Star Entertainment Group

Tyler Durden · 21 September 2012

Re: EGP - Echo Entertainment Group

Genting Hong Kong says it still wants approval to acquire more shares in casino operator Echo Entertainment Group even though its counterpart in Singapore has decided to sell its stake in Echo.

Genting Hong Kong and Genting Singapore are both part of Malaysian conglomerate Genting Group, which has interests in gambling, power generation, oil palm plantations, property development, and oil and gas around southeast Asia.

Genting Hong Kong and Genting Singapore became substantial shareholders in Echo in June 2012, together holding about 9.9 per cent of Echo's shares.

Echo's constitution and agreements with the NSW Independent Liquor and Gaming Authority and the Queensland Office of Liquor and Gaming Regulation restrict anyone from owning more than 10 per cent of Echo unless they gain permission to go above that limit.

Genting Hong Kong said in a statement lodged with the Australian Securities Exchange on Thursday that it had noted an announcement by Genting Singapore on Wednesday that Genting Singapore had decided to sell its 4.8 per cent stake in Echo.

"[Genting Hong Kong] will continue to hold its investment in Echo Entertainment and remains committed to the application to the NSW Independent Liquor and Gaming Authority and Queensland Office of Liquor and Gaming Regulation for approval to acquire more than 10 per cent voting power in Echo Entertainment," the company said in a statement.

Genting Singapore said yesterday that it had entered into an agreement with Citigroup Global Markets Australia to sell its Echo stake on the Australian Securities Exchange in a block trade at $3.99 a share.
Genting Singapore said it had decided to sell the Echo shares after a review by the company to rationalise its investments portfolio.

The James Packer-controlled casinos group Crown is also seeking permission from regulators to lift its stake in Echo, which currently is just under 10 per cent.

Crown has applied to regulators in NSW and Queensland for permission to lift its stake in Echo to up to 25 per cent.

Crown has been upgrading its casinos in Melbourne and Perth in a move to entice more high-rolling VIP gamblers from Asia but wants a presence in Sydney where Echo operates the only casino, The Star.
Echo also operates casinos in Brisbane, the Gold Coast and Townsville in Queensland.

Mr Packer's Crown wants to build what it describes as the world's best hotel at Barangaroo in Sydney and is seeking to incorporate a VIP-only gambling facility into the hotel, which would require approval from the NSW government and gaming authorities.

Shares in Echo are 23 cents, or 5.61 per cent, lower at $3.87.

Morningstar analyst Michael Wu said Echo shares were falling as some of the value added to the stock by takeover speculation was wiped off.

"Genting selling down half their stake is a negative," Mr Wu said.

But Mr Wu said Genting lifting its share in Echo at some later time was still an option.

http://www.smh.com.au/business/genting-hong-kong-still-in-the-echo-game-20120920-268qs.html

Is this a case of look at their actions and not their words?

Tyler Durden · 27 September 2012

Re: EGP - Echo Entertainment Group

Echo Entertainment’s chief executive Larry Mullin has joined the exodus of talent from the casino operator’s senior ranks as James Packer’s Crown builds pressure on Echo to form a joint venture that will share VIP gamblers in Sydney with its southern rival.

In an announcement from Echo today, Mr Mullin announced he will ‘‘complete his time with the company’’ and step down early next year.

In early trade, Echo shares were down 4 cents, or 1.1 per cent, to $3.71.

The announcement comes the same week that Echo director Brett Paton resigned effective immediately amid allegations of a falling out with chairman John O’Neill.

Mr O’Neill became chairman in June after his predecessor John Story was forced to resign after pressure from Crown - which has a 10 per cent stake in Echo - to remove him.

Mr O’Neill said today that Mr Mullin would oversee completion of the redevelopment at The Star, which will be concluded with the opening of the new events centre at the end of this year.

The Star’s $750 million redevelopment was thrown into turmoil early this year when its managing director Sid Vaikunta was sacked due to ‘‘his behaviour in a social work setting’’.

The departures thin the ranks of Echo’s board at a time when the company is attempting to fend of two potential suitors.

Malaysian resorts and casino operator Genting sold down a 4.8 per cent stake in Echo last week that was held by its Signaporean arm but its Hong Kong operation confirmed plans to more than double its 5.1 per cent stake if it gets approval from the casino regulator.

Crown has also applied to lift its stake to 25 per cent.

Mr O’Neill said the board has appointed a recruitment firm to undertake a global search for a new chief executive and is ‘‘well advanced’’ in appointing an additional non-executive director. It is also finalising further appointments.

http://www.smh.com.au/business/echo-chief-larry-mullin-joins-exodus-20120927-26mgr.html

Don't know what the hell is going on with EGP...

Tyler Durden · 5 October 2012

Re: EGP - Echo Entertainment Group

Echo Entertainment shares rose today after a botched share raid yesterday evening was taken as a sign that the battle of the billionaires on its share register has heated up again.

Investors confirmed to BusinessDay that RBS was in the market Thursday evening for 40 million shares at $3.90.
This was just a 5 cents a share premium to the stock’s previous close and too little to tempt shareholders who also have James Packer’s Crown Ltd on the register.

Crown is seeking to lift its 10 per cent stake to 25 per cent if granted permission by the casino regulator.

It is understood that RBS could have picked up 20 million shares at $4 each but that window of opportunity has passed with shares today rising more than 3.6 per cent to as high as $3.99.

Genting’s Singapore operation sold 39.6 million Echo shares last month at $3.99, but Genting’s Hong Kong operation, which owns a 4.2 per cent stake in Echo, stated that it still intended to lift its stake above 10 per cent if permitted by the NSW Independent Liquor and Gaming Authority.

The ILGA has said that Genting is seeking permission to lift its stake to 25 per cent and asked for submissions on Genting’s suitability to be associated with the owner of Sydney’s The Star casino.
ILGA said submissions have to be received by October 26.

http://www.smh.com.au/business/echo-jumps-after-failed-share-raid-20121005-2748n.html

Tyler Durden · 11 October 2012

Re: EGP - Echo Entertainment Group

IT will be 2019 before James Packer can have his casino at Barangaroo and it will require a change to the one casino licence policy in NSW, Premier Barry O'Farrell confirmed yesterday.

There has been speculation that Mr Packer, who is launching a bid to increase his stake in Echo, The Star's parent company, would use that licence to open a high-rollers' room at a six-star hotel he has promised to build at Barangaroo.

But under questioning from Greens MP John Kaye at budget estimates, Mr O'Farrell, a supporter of Mr Packer's proposal, confirmed he believed that the one casino legislation agreement set out that the state's only casino had to be on "one site".

He added he had no intention of breaking the 12-year exclusivity arrangement the Labor government signed with the Star in 2007.

Another budget estimates hearing heard that money left over from the negative regional relocations grants program had been allocated towards the Star casino.

Budget documents obtained by the opposition show that the leftover funds have been funnelled into other programs, including an $8.5 million GST offset for The Star.

http://www.news.com.au/realestate/n...rangaroo-on-hold/story-fnd91nhy-1226492368263

Tyler Durden · 1 December 2012

Re: EGP - Echo Entertainment Group

Echo finally strikes back...

ECHO Entertainment has launched the first salvo in its campaign to persuade the New South Wales government that the NSW economy would receive a larger boost and a bigger tax haul by not granting James Packer's Crown a second casino licence at Barangaroo.

The Echo offensive will be an uphill battle given all indications are that Premier Barry O'Farrell's remaining approval stages are all but a rubber-stamping exercise.

Echo revealed it had big plans to develop several facilities around its existing Star casino in Pyrmont that would probably be jeopardised - or at least retarded - by the granting of a second gaming licence to Crown.

The economics of building what it describes as a more integrated casino would be threatened if it had to share existing revenues with another operator.

The case it is putting to the NSW government is that the game has moved on in the casino world. The new driver of growth in visitors is the multifaceted attraction of an integrated casino, including conference and convention facilities, hotels, entertainment venues, a retail precinct and even theme parks.

Echo finance director Matt Bekier raises questions about whether the Barangaroo development being proposed by Crown would attract the 2 million visitors projected given the development's relatively small size.

''On our reading, there is significant potential to apply that concept of integrated resorts in Australia, but we are a very mature [market],'' he says.

Per head, Australia has one of the highest gambling spends in the world, of which only 18 per cent goes to casinos.

''The idea of a hotel tower with a bit of gaming in it is not going to be the proposition that grows the market. Anyone [in Australia] that wants to gamble right now is probably already gambling,'' Bekier says.
And, when it comes to bringing in new players from overseas, Bekier maintains that high-spending VIPs want the large-scale integrated resorts.

''They don't want to be locked away in a stand-alone resort where they have three restaurants to choose from. That's been tried in small clubs in London and hasn't really worked.''

Echo sees Barangaroo as more likely to siphon off the Star's local VIP market, which over the past year has grown - in part by taking some of Crown's custom.

Star is the closest thing Australia has to an integrated resort but Bekier contends it doesn't yet have critical mass.

Echo's $870 million expenditure program is only the start - the idea being that it will start to generate sufficient cash over the next five years to allow Echo to invest in new facilities, including more gaming areas close by, and potentially using hotels and retail at Darling Harbour.

Echo has even looked at somehow using Sydney's soon to be dismantled monorail.

''That's where we see opportunity. But that sort of investment, where most of the money goes into non-gaming, is only viable if we have one casino - if you have to cut earnings too many different ways you can't invest in the iconic development and non-gaming infrastructure. We need to encourage people to show up.''

Echo's second campaign plank is tax. On its international high-roller business both casinos would be taxed at the lower rate of 10 per cent.

However, once domestic premium-player revenues grow beyond a certain point the tax rate scales up progressively from 27.5 per cent. Splitting this premium-player income between Barangaroo and Star could ultimately reduce the tax take for the NSW government.

Meanwhile, there is still uncertainty over whether Packer's plan to invest $1 billion in Barangaroo and open for business when Echo's exclusive NSW licence expires in 2019 is his preferred option. Crown entered the battle to get into the NSW market by taking a 10 per cent stake in Echo and attempting to negotiate a joint venture at Barangaroo. Some still see this as Packer's first preference.

His real agenda and that of Echo's other big shareholder - Asian gaming operator Genting - will become clearer when they are granted regulatory approval to increase their stakes beyond 10 per cent. Genting is sitting on 7 per cent and has intimated the Sydney market would hold less appeal for further investment if Crown got a second licence.

http://www.smh.com.au/business/echo-argues-no-new-licence-best-for-tax-gatherer-20121130-2amey.html

Tyler Durden · 12 December 2012

Re: EGP - Echo Entertainment Group

John Redmond, the former head of major casino groups in the United States, has been named the new chief executive of casino owner Echo Entertainment.

As flagged by BusinessDay this morning, Mr Redmond will take on the job in January, once all regulatory approvals are received. He replaces Larry Mullin, who announced his resignation in September.

Mr Redmond has previously held executive positions with Caesars World, including senior vice president and chief financial officer of Caesars Palace in Las Vegas.

He was also the co-chief executive officer of MGM Grand Mirage, an international casino and hotel group.

http://www.smh.com.au/business/us-casino-boss-gets-top-job-at-echo-20121212-2b8p7.html

SP up 3.23% today after the news.

Tyler Durden · 10 May 2013

Re: EGP - Echo Entertainment Group

EGP should shoot up on Monday morning:

The NSW casino regulator has given the green light to James Packer’s Crown to lift its stake in Echo Entertainment.

Crown applied in February last year to lift its stake in the rival casino operator from 10 per cent to 25 per cent.
However, the Independent Liquor and Gaming Authority (IGLA) will only allow Crown to lift its stake to 23 per cent, not the requested 25 per cent.

http://www.smh.com.au/business/crown-gets-go-ahead-to-lift-echo-stake-20130510-2jd58.html

Tyler Durden · 25 May 2013

Re: EGP - Echo Entertainment Group

Crown sold it's stake in EGP on Thursday night, sending the SP to an all-time low yesterday of $2.99. Either they are extremely confident in their Barangaroo application, or they have gotten a "wink wink" from the NSW government.

James Packer is used to getting what he wants, even if it comes at a price.

The sale of Crown’s 10 per cent stake in rival casino operator, Echo Entertainment, on Thursday evening crystalised a loss as high as $38 million, according to analysts.

But it sent a clear message; Crown is taking one shot at Barangaroo with its direct application for a casino/hotel complex and Echo was not a Plan B.

The media focus has been on the logical juncture for Crown to make a decision about the sale of its Echo stake - namely the NSW government’s decision next month on whether Crown gets a licence for its development at Barangaroo.

If Crown lost, the Plan B was then expected to be a takeover bid for Echo. It would have meant Crown could decide the future of its stake as Echo’s share price rose to reflect a potential takeover premium.

The rationale for Crown selling now was “difficult to understand”, said Mark Bryan, an analyst at Bank of America/Merrill Lynch.

http://www.smh.com.au/business/packers-one-shot-at-barangaroo-20130524-2k6d8.html

Tyler Durden · 23 June 2013

Re: EGP - Echo Entertainment Group

Some details of EGP's plans in NSW have been leaked:

The spending outside casino areas in Echo's plans is being used to differentiate the bid from Crown's high-rise Barangaroo hotel proposal, with Echo saying it is "clearly pitched at Sydneysiders just as much as VIP high rollers".

The centrepiece of Echo's pitch is to connect the three precincts with a new commuter and cycle bridge called City Link Bridge. It would connect Darling Island where the Star is located to the southern end of Barangaroo.

Cyclists and pedestrians would be separated in their own "lanes" and the bridge, to be designed through an international competition, would possibly open to allow passage of large ships to the National Maritime Museum.

Commuters on the light rail, which extends west to Lilyfield, could alight at the stations at the Star or Pyrmont Bay and then pass across the bridge to Barangaroo.

http://www.smh.com.au/nsw/star-looks-beyond-pyrmont-20130622-2opgf.html

Tyler Durden · 4 July 2013

Re: EGP - Echo Entertainment Group

EGP loses to CWN in bid for monopoly in NSW. Both companies put into trading halt before today's announcement. My view is that EGP will get smashed when it comes out of the trading halt, but the analysts don't think the fall will be that great:

Analysts warned this afternoon the stage 3 approval win by Mr Packer - which is highly likely to lead to a full approval for his casino development - wouldn’t necessarily cause a huge rally in Crown stock, and that likewise Echo shares shouldn’t plummet too far either.

Credit Suisse analyst Larry Gandler said he had a valuation of $2.60 to $2.90 on Echo shares if Mr Packer’s casino and development at Barangaroo went ahead as planned.

Mr Gandler said before the announcement and trading halt in Echo shares today, the market seemed to be reflecting in its share price a 50 per cent reduction in VIP turnover in 2020 and a 20 per cent reduction in private gaming room revenue as the new Crown in Sydney opened for business and started to poach customers.

http://www.smh.com.au/business/crown-wins--but-its-not-the-jackpot-20130704-2pdrq.html

Tyler Durden · 9 November 2013

Re: EGP - Echo Entertainment Group

Going through my old bookmarks, it's always interesting to look at things in hindsight. Back in June 2012 this was considered a 'hot stock':

Price Since its split from Tabcorp, Echo's share price has sagged, hitting $3.42 in February. The emergence of Crown on its share register bumped the price up above $4.60 early last month, but it slipped to as low as $4.26 on Friday before closing at about $4.37.

Worth buying? Most speculation has centred on a potential takeover bid of Echo Entertainment by Crown. That remains a possibility but there are plenty of other permutations available before Echo's fate is decided.
The stock already has an element of takeover speculation built into it, but if a bid doesn't eventuate, its operating performance will be all it has to support the price. As the Sydney refurbishment has unfolded, it's not at all clear that Echo is on a winner at The Star.

http://www.smh.com.au/money/investing/hot-stock-echo-entertainment-20120605-1zti8.html

Obviously the takeover never happened as Packer pulled out and said he'd build his own damn casino across the waters. EGP closed at $2.45 on Friday.

notting · 11 April 2014

Re: EGP - Echo Entertainment Group

At first I though Matt Bekier must be incredable!! 12% jump on his appointment on a fairly negative day! WOW.
Then I saw this.

normalised gross revenue across the group grew by 5.7% on the prior
comparable period (+13.2% on an actual basis).
For the domestic business, excluding the
VIP Rebate business, revenue grew 6.4% on the prior comparable period, with gaming
revenues in both Sydney and Queensland showing growth

Makes a bit more sense.
Looks like pokie machines are back in vogue. (as figure excludes high rollers)

skc · 11 April 2014

Re: EGP - Echo Entertainment Group

notting said:
At first I though Matt Bekier must be incredable!! 12% jump on his appointment on a fairly negative day! WOW.
Then I saw this.

Makes a bit more sense.
Looks like pokie machines are back in vogue. (as figure excludes high rollers)

I HATE IT WHEN THE ANNOUCNEMENT TITLES DON'T COVER THE TOPICS WITHIN THE ANNOUNCEMENT!!!

Yes... I hate it so much that I had to use ALL CAPS.

How bloody hard was it to say in the title "CEO appointment AND TRADING UPDATE"?!

I can understand that when they try to hid a bad announcement. But why hide a good update?

Actually... I guess it rewards those who bothered to read the announcement, and provides trading opportunities that would not be there otherwise.

Just not my day that I couldn't even pick these kind of low hanging fruits.

VSntchr · 11 April 2014

Re: EGP - Echo Entertainment Group

notting said:
At first I though Matt Bekier must be incredable!! 12% jump on his appointment on a fairly negative day! WOW.
Then I saw this.

LOL!
My first thoughts "echoed" yours Notting :

issh · 20 July 2015

Re: EGP - Echo Entertainment Group

Definitely a stock to watch tomorrow

http://www.brisbanetimes.com.au/bus...n_code=nocode&promote_channel=social_facebook

Wysiwyg · 20 July 2015

Re: EGP - Echo Entertainment Group

issh said:
Definitely a stock to watch tomorrow

Once all the coal mines close then tourism in Qld. will be the main play. This precinct is advertised as lavish and likely to be affordable by wealthy Asian visitors and retiree Aussies with sizable nest eggs.

notting · 21 July 2015

Re: EGP - Echo Entertainment Group

QUEEN’S WHARF BRISBANE Project commitment

"Tourism is going to be the next mining boom"

Love it!
Oi Oi Oi

Re-EGP, there will bloody well need to be.
Major role of the dice.

notting · 4 November 2015

Re: EGP - Echo Entertainment Group

The fantasy ~

"The increasing wave of Asian tourism, particularly from China, has the potential to be our next mining boom," Mr Bekier said. "To capture our fair share of this opportunity, we need more tourism infrastructure – especially in the high end accommodation category."

Read more: http://www.theage.com.au/business/m...-for-rally-20151103-gkq4xf.html#ixzz3qUEB273C
Follow us: @theage on Twitter | theageAustralia on Facebook

The reality ~

"Chinese demand for global property could fall by 30 per cent" this year, Credit Suisse analysts Damien Boey and Hasan Tevfik estimate in a recent research note. And that trend looks to have extended to Australia.

"Chinese bidders have reportedly been less active in foreign property markets" since the August devaluation of the yuan, the analysts say. The key factor driving reduced Chinese demand for foreign bricks and mortar is not tighter capital controls, but the less confident and wealthy Chinese consumer.

"The underlying issue is weakness in the Chinese economy," write the analysts. "Capital flight is tightening credit conditions, which in turn is dampening income growth, wealth and the purchasing power of Chinese residents."

"All things considered, the likelihood is that Chinese flows into the Australian property market have flattened out in 2015."

Starting to go short.

System · 16 November 2015

On November 16th, 2015, Echo Entertainment Group Limited (EGP) changed its name and ASX code to The Star Entertainment Group Limited (SGR).

notting · 21 October 2016

:badsmile:

Perhaps we should build for the low rollers instead. But we could be getting all those fly in CWN launderers for a while in QLD.

I guess if you take a 7 year view, there could be a lot of laundering again when Xi has left office. Short term? Not so good.

The Chinese communist party monsters have a history of waiting for the leader with half a brain to leave office before they go back to being total psychopaths once again. Let the good times role.........

SGR - The Star Entertainment Group

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