In a General Announcement made yesterday, Genting Malaysia Berhad said its subsidiary Genting Ibico Holdings Limited has entered a joint venture casino agreement with Apollo Resorts & Leisure Limited and Sevco Limited, to be renamed as Apollo Genting London Limited. Under the agreement Genting Ibico and Apollo each hold 50% equity interests in the joint venture company. Genting and Apollo will contribute equity totalling £2.95 million into the joint venture.

The joint venture will seek to obtain a long term lease or to acquire land located at London’s Royal Docks, Silvertown Quays, Newham, which is owned by the London Development Agency. It will then develop, either itself or through third parties, and operate a leisure entertainment destination to exploit the Olympic Festival Village opportunity. The intention is to lease, sell or sublease parts of the development to Apollo and Genting Ibico for separate developments, conditional on a casino licence being granted to Apollo and transferred to Genting Casinos UK Limited (GENCAS).

The plan also includes the development through third party arrangements of opportunities in respect of the remainder of the land, including development of residential property and offices. Genting Ibico was incorporated in the Isle of Man on 29 June 2009 with its principal activity being investment holding. GENCAS was incorporated in the UK on 1 October 1980 with its principal activity being as a casino operator. Apollo is a private company incorporated in the UK in 2006. Apollo is principally involved in the fields of leisure, entertainment, sport and property. Established and owned by Paul Gregg, Apollo presently has a number of corporate affiliate partnerships with global brands; leading design, construction and delivery partners and ventures with the public sector.

The London Borough of Newham is tendering a single “large” casino premises licence under the British Gambling Act 2005 in respect of a casino, and has invited applications for the licence or alternatively, a provisional statement, which if granted will enable the holder to apply for the licence. The Borough will select one successful applicant to be granted either a Licence or a Provisional Statement.

GENCAS had on 26 May 2010 made a first stage application to the Borough for a Provisional Statement. Apollo had also separately made an application for the Provisional Statement. Both the Genting application and the Apollo application have been approved in principle, and will now go through the second part of the two-stage procedure due for submission to the Borough in November 2010. Pursuant to the Casino Agreement, GENCAS and Apollo have agreed to work together for Apollo to submit the Stage 2 Apollo application. It is also agreed that the Genting application will not be submitted for Stage 2.

If the Stage 2 Apollo Application is successful, Apollo will apply to convert the Provisional Statement into the Licence. Upon successful conversion, an application will be made to the Borough to transfer the Licence from Apollo to GENCAS for an aggregate consideration of £5 million (plus applicable taxes) payable to Apollo. It is intended for GENCAS to be the sole owner and operator of the Casino.

If the Apollo Application is successful, GENCAS will have a casino licence to construct and operate a “large” Casino in the Docklands area in Newham. Gambling legislation introduced by the British Gambling Commission in 2005 allows for only a limited number of new licences to be granted by selected local authorities, comprising eight “large” and eight “small” casinos. The outcome of Stage 2 Apollo Application is expected to be known in February 2011. If selected, GENCAS expects the only “large” Casino in Newham to be a successful future addition to GENM’s 46 existing casinos in the UK. (E-10.21.10)

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