Genting queried over inviting Stanly Ho to invest in Sentosa IR project
By Johnson Choo Channel NewsAsia 25 Jan 07
SINGAPORE: Shares of Genting International dropped 9 percent on Thursday on reports that it had been quizzed by the government over its partnership with Macau casino mogul Stanley Ho.
This, after Genting and Star Cruises said they were taking a majority stake in an upcoming casino and hotel project in Macau, and Star Cruises was selling a minority stake to a group of investors led by Ho.
There has been talk about possible links between Stanley Ho and the triads in Macau, although these have never been confirmed.
Experts say the government is most likely questioning Genting over Stanley Ho's level of involvement in the Sentosa integrated resort, and the contract terms he has with Genting.
They suggested several possible outcomes - which range from the authorities accepting Ho's involvement, to directing Genting to terminate the contract with him. In the worse case scenario, the licence could be withdrawn - but this is seen as unlikely.