LORD STEINBERG, the chairman of Stanley Leisure, has received a windfall of £36 million after selling part of his 17.6 per cent stake in the gambling company to Genting International, a Malaysian casino group.

The share sale is part of a wider tie-up between Stanley and Genting that will see the two companies set up a joint venture to develop big Las Vegas-style regional casinos in the UK once the Government implements controversial new gambling laws.

The agreement, announced yesterday with a half-year trading update by Stanley, lifted its shares 22p to 445p, up 5 per cent, amid hope that the tie-up may presage an eventual bid. Another intriguing aspect of it is that the Malaysian group has a 15 per cent stake in London Clubs International, the subject of an abortive bid by Stanley almost two years ago.

Lord Steinberg, who will retain his remaining 11.3 per cent “for the foreseeable future”, has sold 8 million shares at 450p.

It emerged yesterday that Genting has for a year owned a 2.8 per cent stake, just below the declarable threshold, giving a total stake of 9.1 per cent. This will rise to 10.2 per cent under a deal by which Genting will sell half of Maxims — the London casino it is buying from Gala — for up to £6.85 million in shares. It cannot make a hostile bid for three years.

Under the terms of the regional casino joint venture, Stanley is to inject its development project next door to Leeds United Football Club’s Elland Road stadium, valued at £5.4 million. If the Leeds site does not get the green light from the Government, it will be sold back to Stanley.

Bob Wiper, Stanley’s chief executive, said that Genting was “a long-term player” that would bring experience of building and operating large casino developments. It has agreed to hold its new shares for at least two years.

Mr Wiper said that the Genting tie-up would boost Stanley’s hopes of getting one or two of the eight regional casino licences envisaged by the Government in the first phase of the new gambling regime. “If we don’t get any in the first phase, we’re confident we’ll get some in the second phase,” he said.

Colin Child, Stanley’s finance director, played down suggestions that Genting could eventually bid for the company. He said: “Is this a prelude to a more strategic move on the company? Absolutely not. Right now, there is no suggestion they will make any kind of bid for the company.”

Mr Child said that Stanley’s joint venture with Genting was exclusive, precluding it from pursuing any similar project with London Clubs International. He reiterated that Stanley was no longer interested in reviving its bid for London Clubs.

In its trading update, Stanley said that profits growth from the fixed-odds betting terminals in its betting shops had “largely offset” the reduction in over-the-counter business resulting from a run of adverse sporting results.

Although its provincial casinos had seen a “quiet start to the year”, its London casinos, including Crockfords, had recovered from last year’s losing streak, the company said.

ROOTS IN A COLONIAL PAST

Genting International traces its origins back to 1965 when Lim Goh Tong was working on a hydroelectric power project in the Cameron Highlands, a resort popular with British colonials seeking refuge from the tropical heat. Realising the potential he bought some land and the hilltop hotel he built forms the basis of Genting Highlands Resort, a casino complex, which is part of Genting Berhad, a conglomerate with a market value of US$8 billion.

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