STANLEY LEISURE, Britain’s biggest casino operator, last night announced a recommended bid from Genting International, the Malaysian gaming operator, worth £639 million, or just over £700 million including debt.
Genting, already Stanley’s biggest shareholder with a 20 per cent stake, said that it had bought a further 5.5 per cent from Lord Steinberg of Belfast, the casino chain’s chairman, and that the peer had committed to accept the offer in respect of his remaining 5.3 per cent holding.
The Malaysian group is understood to be seeking to head off a possible bid from Harrah’s Entertainment, the American gaming giant that recently made a £280 million offer for London Clubs International (LCI).
The move by Harrah’s broke up a planned nil-premium merger between Stanley and LCI. Genting also has a 29.8 per cent stake in LCI and would have become the biggest shareholder in the combined company if a merger had gone through.
However, analysts suggested last night that Harrah’s or MGM Mirage, another Las Vegas gaming giant, may yet attempt to trump Genting’s 860p a share bid for Stanley.
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But after lifting its total stake, including the irrevocable undertakings from Lord Steinberg and his fellow directors, to 30.5 per cent, Genting is likely to prove difficult to displace. Its offer is a premium of 26.4 per cent to the 680½p the shares were trading at before Stanley first announced an approach.
Genting owns Maxims casino in Central London, while Stanley runs 45 casinos including Crockfords in Mayfair.