Clouds gather over Crown as Australian police probe Packer brawl

May 7 (Reuters) - Police are investigating a public brawl between James Packer, one of Australia's richest men, and a television executive, which could jeopardise regional expansion plans for Packer's casino business if it leads to a criminal conviction.

The fight on Sunday between Crown Resorts Ltd Executive Chairman Packer and David Gyngell, chief executive of Nine Entertainment Group, left Packer with a black eye and a bruised reputation after photographs of the violence were published around the world.

Police on Wednesday confirmed they had launched an investigation even though the old schoolmates have issued a statement saying they remained friends despite their "ups and downs".

Nine said Gyngell - seen in the photographs looking dishevelled and barefooted as he wrestled with Packer outside the casino mogul's Bondi beach apartment - had accepted responsibility for initiating the fight.

Any resulting criminal convictions could complicate Packer's plans to expand his casino operations in Japan, Sri Lanka and Australia.

Packer's Melbourne-based Crown has won initial approval to build a $1 billion luxury hotel complex with a VIP gaming licence in Sydney, pending the outcome of a probity inquiry into the firm's fitness to operate a casino. It is also bidding for a $1 billion-plus casino project in Brisbane, in addition to its two existing casinos in Melbourne and Perth.

The Commission for Gambling and Liquor regulation in Melbourne is watching the police investigation, a spokesman said. But he said it was "a bit speculative" to say the brawl would have an impact on Packer's casino licence there.

"We are just aware of the police investigation. We are waiting to see what happens," he said.

In Sydney, the Independent Liquor and Gaming Authority said it had no comment on the brawl.

The probity inquiry is looking at whether Packer is a "suitable person" to run Sydney's second casino, including whether he is "of good repute, having regard to character, honesty and integrity".

A Crown spokeswoman said she was unable to comment on the investigation or its potential impact on Packer's business interests.

New South Wales state parliamentarian Alex Greenwich, who opposes the new casino, said he hoped the gaming authority considered "recent events" when making its decision.

Opposition from politicians and Buddhist leaders fearful of the cultural impact of casinos have already hampered Packer's push to expand into Sri Lanka.

The Sri Lankan government last month approved Crown's plans to build a $400 million resort complex along with two similar projects, but without any explicit permission to operate casinos.

In Japan, Packer is hoping his Macau-based joint venture Melco Crown Entertainment Ltd will be chosen as one of the few foreign firms allowed to enter the potentially massive market, as parliament considers liberalising the industry.

Australian Shareholders' Association spokesman Stephen Mayne told ABC radio that Packer's punch-up had added an extra layer of risk to his operations.

"He's one of the three biggest casino moguls in the world, and the biggest risk management question for casino licensees is probity, and being seen to be a fit and proper person," he said.

"So clearly being involved in a violent street brawl is potentially problematic in terms of ongoing and future casino licensing." (Editing by Stephen Coates)

Sri Lanka Telecom seeks investors to develop property

May 8, 2014 (LBO) - Sri Lanka Telecom Plc, the island's only wireline operator said, it was looking for local and foreign investors jointly develop its property holdings scattered across the country.

"With this new initiative, we are looking forward to support local and foreign investors who are willing to join hands with SLT for any viable joint venture in the future," SLT group chief executive Lalith De Silva said in a statement.

"We believe SLT’s property portfolio has a high economic and market value which will have a growing demand in the future aligning to the country’s economic and business development agenda."

"Our strategy is to monetize every asset of the company to maximize returns and thereby increase group value."

The property related activities will be carried out through SLT Property Management (Pvt) Ltd.

It will also look at opportunities to lease or hire out existing facilities for workshops, recreational and other business activities. The company has set up a website www.sltproperty.lk for the purpose.

Chairman Nimal Welgama said within a fast changing telecom sector the firm had re-invest its business strategy and diversity to add value to shareholders.

Retailers keep away from equity market damaged by industry greed

By Samantha Nayakarathna

Ceylon FT: The country's equity market continues to grapple with the lack of confidence and trust as retail investors stay away despite the prevailing low interest rate regime.

With the low interest rate regime continuing to remain, people are reluctant to invest in capital market products, which give a high return compared to other investment tools. Ceylon FT spoke to veteran capital market specialist Ravi Abeysuriya to get his views on this.

"The fundamental issue which is lack of confidence and trust still remains. That is why people are not benefiting from these capital market products. People are not yet confident to come in a big way. If you ask from an average person, he still believes in fixed deposits. That is the big issue in Sri Lanka," Abeysuriya, who is the CEO of the Candor Group of Companies, said.

"Everybody invested in fixed deposits because historically interest rates have been high. But today, it has drastically come down. Interest rates have come down by 40%, It is going to stay like this and it is not going to quickly turn around like during the war. During the war period interest rates were going up and down."
Abeysuriya said the low interest rate will continue and the capital market will be the only investment tool which will gives a high return on investment.

"If the macro-economic management is reasonably sound, where there are funds flows coming, where there is less demand on credit, pressure on interest rate is not going to be high, and there is no pressure actually. Interest rate is a supply and demand issue. So when there is less demand, interest rate will come down. And continue to be like that, as far as CBSL is concerned, inflation is only four per cent; that means deposits will not pay huge real return over and above inflation."

"If inflation is four per cent, deposits will pay six to eight per cent. So you will get low interest rate, and what is the choice people have? The choice is the capital market, and capital market products are varied, and a good example is unit trust. Our Candor growth fund has given 20% return. People have no confidence in unit trusts; unit trusts have no issue what so ever with stock market manipulation. Unit trusts are managed by professionals and they know what they are doing."

Abeysuriya was of the view that average people still believe traditional investment models.

"So what are our people investing on; smarter people are investing in land that is very good. Sri Lankan land price will continue to increase. But what is the problem with land? It is not easy to liquid. What is the investment of the poorest of the poor? What is the investment they use? Gold. But they don't have trust in the capital market. Capital market serves the same purpose.

"Only 9,000 people are investing in the stock market, only 9,000 CDS accounts are active out of some 700,000 CDS accounts. This is the damage. When the interest rates are low, when you get hardly any return you spend. You don't invest for the future.

"This is a long-term industry; if you do damage, you do permanent damage. That is what we are facing today. You did damage in 2009 and 2010 by getting too greedy, and you damage confidence. If I give you the wrong advice and you lose money will you have any confidence? That is what has happened now, and damage control has to happen."
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Nations Trust commences the year with ‘a commendable performance’

‘The Bank closed the first quarter ending 31st March 2014 with a post-tax profit of Rs 550Mn, a growth of 10% over the corresponding period in 2013. First quarter achievement was driven by good growth in top line revenue which was somewhat hindered by higher impairment charges and slower growth in customer advances which mirrored industry performance.

‘The year commenced with private credit growth falling further, despite market interest rates continuing to trend downwards following further easing of monetary policy. Share of pawning advances in total advances further reduced whilst significant increase in NPLs was also noted for the industry during first quarter of the year.

‘Net interest income recorded a growth of 22% over previous period with improved NIMs. Higher yielding asset portfolios grew moderately to partly off-set declining commercial loan interest rates whilst cost of liabilities reduced further with the re-pricing of shorter tenor deposits. Continuous efforts to grow low cost deposits improved the deposit mix which assisted in reducing the cost of liabilities. The low interest rate operating environment brought many challenges on our corporate portfolio with spreads thinning considerably coupled with a lackluster demand for new credit. Leasing and credit card portfolios grew remarkably to ease off the pressure on declining yields. Net fees and commission income recorded a growth of 21% for the period under review. Credit cards contributed considerably towards this growth whilst new products launched during previous year such as Nations Shopping card and Master card also showing great support for fee generation. Net trading income recorded exceptionally higher growth due to SWAP premiums favourably impacting FX income which in previous period recorded a loss.

‘Impairment charge for the current period amounted to Rs. 307Mn with the major impact arising from the pawning portfolio. There was no impairment on the pawning portfolio in the 1st quarter of 2013 since the sharp decline in the market price of gold began in April 2013. However since then, the Bank’s exposure to pawning has been managed at 2.4% of the overall loan book whilst the loan to value ratio has been appropriately adjusted to reflect the market value and no further significant impairment charges are expected from the pawning portfolio.(NTB press release)

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