KUALA LUMPUR, MALAYSIA - Malaysian gaming group Genting has paid US$100 million (S$144 million) for a 3.2 per cent stake in United States casino operator MGM Mirage, an official from the US company said yesterday.

The stake was offered under a US$1-billion equity placement by MGM Mirage last month.

Mr Alan Feldman, senior vice-president of public affairs for MGM Mirage, told Reuters: 'We take this as a sign of great confidence in our company.'

Last month , Kuala Lumpur-based Genting and its unit Resorts World had subscribed for a combined US$100 million worth of notes issued by the US company.

The notes were part of its US$1.5 billion fund-raising exercise to help settle its outstanding debts and for general corporate purposes.

Malaysian analysts had said that the investments could pave the way for Genting to acquire a stake in MGM or to take over the US casino operator's investment in MGM Grand Macau.

Genting, founded by the late Malaysian-Chinese tycoon Lim Goh Tong, is particularly keen to explore opportunities in Macau, according to the Financial Times (FT).

MGM Mirage has a 50-50 joint venture with Ms Pansy Ho, the daughter of Hong Kong gaming magnate Stanley Ho, in the MGM Grand Macau.

But a recent ruling by New Jersey gaming officials that Ms Ho is an 'unsuitable' partner for MGM Mirage has put any follow-up deals in Macau on hold.

FT said that Genting had been interested in potentially taking a stake in Ms Ho's US$1.25-billion joint-venture casino with MGM Mirage. - REUTERS