July 14, 2017 / 12:22 AM / 6 months ago

Malaysia's Genting sells stake in Australia's The Star

SYDNEY (Reuters) - Malaysian tourism and gambling conglomerate Genting Group said on Friday it had sold its 5.6 percent stake in Australian casino operator The Star Entertainment Group Ltd (SGR.AX) for A$235.2 million ($181.9 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 $67.5 million on its investment.

Genting said in a statement it sold the shares to realize 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 percent to A$5.23, their highest intraday level since May 29, while the broader Australian market was up 0.5 percent.

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

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

    ($1 = 1.2928 Australian dollars)

    Reporting by Byron Kaye; Editing by Stephen Coates

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