Malaysia's Genting sells stake in Australia's The Star casino operator for A$235m

The logo of Genting Malaysia Berhad is seen at Genting Highlands at the state of Pahang outside Kuala Lumpur on Dec 17, 2013.
The logo of Genting Malaysia Berhad is seen at Genting Highlands at the state of Pahang outside Kuala Lumpur on Dec 17, 2013. PHOTO: REUTERS

SYDNEY (REUTERS) - Malaysian tourism and gambling conglomerate Genting Group said on Friday (July 14) it had sold its 5.6 per cent stake in Australian casino operator The Star Entertainment Group Ltd for A$235.2 million (S$250.3 million).

Genting said it sold 46.4 million shares in The Star at A$5.07 in a block trade, giving it a net gain of US$67.5 million on its investment.

Genting said in a statement it sold the shares to realise a profit and would use the proceeds as general working capital and capital expenditure for the group. It could also "fund new investments ... should suitable opportunities arise".

Shares in The Star rose 2 per cent to A$5.23, their highest intraday level since May 29, while the broader Australian market was up 0.5 per cent.

A spokesman for The Star was not immediately available for comment.

Genting said investment bank UBS conducted the block trade which left it with no remaining stake in The Star.