Perpetual Would Back An Echo Equity Raising If It Gets The Green Light For Its Sydney Development

SYDNEY, AUSTRALIA – SEPTEMBER 15: A fireworks and light display is seen at the opening of ‘The Star’, formerly Star City in Pyrmont on September 15, 2011 in Sydney, Australia.

Echo Entertainment’s largest institutional shareholder would back an equity raising if the owner of Sydney’s Star casino is allowed to go ahead with redevelopment plans unveiled at the weekend.

Perpetual’s head of equities Matt Williams told the Australian Financial Review the investment bank would back an equity raising at Echo if it won.

Not that it is likely to be needed. Williams echoed repeated claims made by Echo chief executive John Redmond that the company could, if it wanted to, fund the revamp out of cash it already has.

Former Future Fund boss David Murray is heading a panel which will make a decision on the competing Echo and Crown proposals.

Perpetual — which was already a major shareholder — increased its stake in Echo after James Packer sold a big chunk of it.

Read more here.

Now read: ECHO BOSS: We Don’t Need James Packer’s Money To Fund Our Expansion

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