News: Crown approved to increase Echo stake

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Crown’s Limited (ASX:CWN) bid for an increased stake in rival Echo Entertainment Group Limited (ASX:EGP) has been approved by Queensland's gaming authority.

 

The approval allows Crown to lift its voting stake to above 10 per cent and follows similar approvals by NSW last week.

 

The NSW Liquor and Gaming Authority capped Crown's share in Echo at 23 per cent.

 

Crown says the approvals from the Queensland Attorney General and the Queensland Governor in Council permit Crown to have voting power in Echo above 10 per cent but not to exceed an approved cap of 24.99 per cent.

 

Crown early last year included the 25 per cent limit in its application to the liquor and gaming authority and the Queensland government as part of its plan to push for an increase in its stake in Echo.

 

Crown generated a net profit of $180.8 million for the first half of the current financial year.