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Malaysian tycoon Lim Kok Thay’s bid for casino licence has traders on edge as Macau’s old guard face fight to stay alive
- The entry of the Genting chairman into the fray raises the prospect of one of Macau’s established licence holders being run out of town
- Macau stocks have tumbled after what Morgan Stanley described as the ‘negative surprise’ of Kok’s bid
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The last-minute bid by Malaysian billionaire Lim Kok Thay for a Macau gaming licence has rattled stock investors.
His entry into the fray means seven casino operators are vying for just six new concessions, which raises the prospect of one of Macau’s established licence holders being run out of town by a newcomer.
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“This is a negative surprise,” said Morgan Stanley in a report.
Macau casino stocks fell on Thursday, with Wynn Macau closing almost 7 per cent lower, as investors grew concerned that one of the six current licence holders might find themselves out on their ear.
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A company called GMM submitted a bid to obtain a concession before the tender closed on Wednesday, making it the seventh and final contender for the new gaming licences. According to Macau’s Commercial Registry Office, GMM lists Lim Kok Thay, who shares the name of the chairman of Malaysia’s Genting Group, as an administrator.
Genting, which develops and operates casinos and resorts in countries such as Australia and Singapore, could not be reached for comment on Thursday.
01:22
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