Malaysian giant Genting has increased its stake in Australian casino operator Echo Entertainment.
On Monday, the company confirmed that in a deal worth AU$83m it had acquired shares representing 2.8 per cent of Echo, adding to the 4.9 per cent it purchased earlier in the month.
“The board continuously explores different investment opportunities and is of the view that investment in Echo through the transaction presents a good opportunity for the company to diversify the company’s investment portfolio,” the company said in a stock exchange filing.
Echo, which operates four casinos, has been the subject of takeover speculation for a while now, with James Packer’s Crown considered to be the front runner.
This latest development suggests, however, that Genting may be moving towards taking a 10 per cent stake in Echo, matching the stake owned by Crown.
