It may sell land for the project or join the venture by new Genting unit

GALLANT Venture, the Salim group's Singapore-listed vehicle, may team up with a new unit of Malaysia's Genting group to help set up a casino on the Indonesian island of Bintan.

'Gallant will either sell its land in Bintan or go into joint venture with the parties (to build the casino),' a businessman familiar with the plan told BT.

The parties that may be involved in helping set up the casino are Malaysian businessman Mark Wee Liang Yee and Landmarks, in which Genting has emerged as a surprise owner.

Genting yesterday confirmed it has bought almost 17 per cent of Landmarks to become the second biggest shareholder. The sellers were Syed Yusof Syed Nasir, who owns the Hard Rock Cafe franchise in Malaysia, and Singapore partner Ong Beng Seng of Hotel Properties.

Privately held North Symphony is the largest shareholder of Landmarks with an 18.65 per cent stake. North Symphony's shareholders are Zakaria Abdul Hamid and Lee Tuck Fook - seen to be associates of Mr Wee.

Mr Wee is seen to be the front-runner for any casino plan on Bintan. Analysts say Genting's considerable clout, resources and gaming experience would fit nicely with the casino plan.

Incidentally, Genting is the favourite to win the bid for the integrated resorts-cum-casino licence on the nearby Sentosa Island in Singapore.

Gallant, which was listed on Sesdaq in June, could not be reached for comment yesterday.

What is well known is Gallant's vast landbank on Bintan and Batam.

In its listing prospectus, it noted that its industrial park business owns and operates 63 hectares of net lettable area on the two islands.

Analysts say the casino plan may not be a sure bet, even though Mr Wee purportedly holds a casino licence for Bintan - believed to have been awarded some years back. This is because predominantly Muslim Indonesia can be a tricky place to navigate, especially if it concerns gaming.

Malaysian-listed Magnum Corporation discovered this two years ago.

In 2003, Magnum's shares soared on its award of a licence to operate a 'sports welfare game', which was initially thought to be a lottery, in Indonesia.

But by January 2004, Indonesia's Social Affairs Ministry had said that Magnum's permit only authorised it to organise a simple lottery with winners to be given door prizes.

Subsequently, other Indonesian leaders voiced objections, noting that prize draws in the predominantly Muslim nation would be perceived as gambling, which is illegal under Islamic and Indonesian law. Little more has been heard about Magnum's Indonesian foray. It is not known whether Indonesia will lift its existing ban on casinos in the light of Singapore's two planned IRs.

But investors continue to bet on Gallant, whose shares have gained more than 30 per cent in recent weeks to end at 72 cents yesterday. Landmarks has also been active, moving from RM1.11 in early June to close at RM1.90 yesterday.