Pbl Ups Ante On Macau Casinos

The Age

Friday May 19, 2006

By COLIN KRUGER and LISA MURRAY, SYDNEY

JAMES Packer's Publishing and Broadcasting Ltd has staked more money on Macau, with $255 million to buy land and build its third hotel and casino.

PBL and its venture partner, Melco International, said yesterday they would buy a site in the traditional casino area on the Macau Peninsula.

The news sent PBL shares up 43? to $19.08, just short of record highs.

Sources close to the deal described it as the joint venture's "lowest-risk" casino because of its location.

The deal is expected to be finalised in the first quarter of next year and building start in six months.

"This will underpin the valuation of the joint venture at north of $US5 billion," sources said yesterday.

The share price of companies associated with the territory - which has become China's gambling enclave - have bloomed recently. Macau is expected to overtake Las Vegas this year in terms of gambling turnover.

But some analysts have been cautious about putting big valuations on the investments, especially since the venture has yet to open a casino and there will be plenty of competition.

The PBL-Melco venture is building the Crown Macau Hotel and Casino in the Taipa area of Macau. It is expected to open in April.

The partners are also building the City of Dreams entertainment resort on the Cotai Strip.

© 2006 The Age

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