Casino mogul Ho hands over control
By Kelvin Chan |
January 25, 2011, Tuesday
|
Print Edition
Print Edition
BILLIONAIRE Stanley Ho has transferred almost all of his stake in gambling company Sociedade de Jogos de Macau Holdings to family members, the latest move in a handover of power as the casino baron struggles with poor health.
Ho transferred most of his nearly 32 percent stake in the parent company, which owns just over half of the Macau casino operator, also known as SJM, according to a filing yesterday to the Hong Kong stock exchange. He is now left with only 100 shares.
Half of the stake was transferred to a company owned by Ho's third wife and the rest was transferred to another company owned by Ho's five children from his second wife, according to a statement from the public relations company representing the two holding companies. The stake is worth about HK$13.4 billion (US$1.7 billion), based on SJM's closing share price yesterday.
The changes are the latest step in succession plans as the 89-year-old billionaire passes the reins of his gambling empire in the former Portuguese colony of Macau to his children. He had surgery in 2009 for unspecified reasons and spent seven months in hospital before being discharged in March. Local media reported that he underwent brain surgery after hitting his head. He has rarely appeared in public since.
The news follows an announcement in December by SJM that said Angela Leong, Ho's fourth wife, had replaced him as managing director.
She was quoted by a Macau newspaper as saying the change was made because it was "inconvenient" for Ho to frequently travel back and forth between Hong Kong and Macau to handle company business.
Earlier in December, Ho transferred his 7.7 percent direct stake in SJM to Leong.
Ho is the father of Macau's gambling industry and presided over its rise for four decades until the government ended his company's monopoly in 2002. SJM runs 17 casinos and four slot machine lounges in Macau but has had to compete with American operators such as Wynn Resorts Ltd and Las Vegas Sands Corp. Macau is the only place in China where gambling is legal.
Ho has 17 children, some of whom are also involved in the casino business.
Most prominent is daughter Pansy Ho, who jointly owns the MGM Grand Macau casino with MGM Mirage. She is also managing director of another of her father's company, Shun Tak Holdings, which operates passenger ferries between Hong Kong and Macau.
Allegations that her father was involved with Chinese organized crime gangs forced MGM Mirage to sell a 50 percent stake in Atlantic City's top casino. The company had to choose between the stake and Macau, the world's biggest gambling market, after state gambling regulators accused Stanley Ho in a report last year of letting the gangs, known as triads, operate and prosper inside his casinos. He denied the charge.
New Jersey state law requires companies seeking gambling licenses to prove they have no associations with "notorious or unsavory persons."
Stanley Ho's son, Lawrence, is co-chairman with Australian billionaire James Packer of Nasdaq-listed Melco Crown Entertainment, which operates two casinos and hotels in Macau.
Ho transferred most of his nearly 32 percent stake in the parent company, which owns just over half of the Macau casino operator, also known as SJM, according to a filing yesterday to the Hong Kong stock exchange. He is now left with only 100 shares.
Half of the stake was transferred to a company owned by Ho's third wife and the rest was transferred to another company owned by Ho's five children from his second wife, according to a statement from the public relations company representing the two holding companies. The stake is worth about HK$13.4 billion (US$1.7 billion), based on SJM's closing share price yesterday.
The changes are the latest step in succession plans as the 89-year-old billionaire passes the reins of his gambling empire in the former Portuguese colony of Macau to his children. He had surgery in 2009 for unspecified reasons and spent seven months in hospital before being discharged in March. Local media reported that he underwent brain surgery after hitting his head. He has rarely appeared in public since.
The news follows an announcement in December by SJM that said Angela Leong, Ho's fourth wife, had replaced him as managing director.
She was quoted by a Macau newspaper as saying the change was made because it was "inconvenient" for Ho to frequently travel back and forth between Hong Kong and Macau to handle company business.
Earlier in December, Ho transferred his 7.7 percent direct stake in SJM to Leong.
Ho is the father of Macau's gambling industry and presided over its rise for four decades until the government ended his company's monopoly in 2002. SJM runs 17 casinos and four slot machine lounges in Macau but has had to compete with American operators such as Wynn Resorts Ltd and Las Vegas Sands Corp. Macau is the only place in China where gambling is legal.
Ho has 17 children, some of whom are also involved in the casino business.
Most prominent is daughter Pansy Ho, who jointly owns the MGM Grand Macau casino with MGM Mirage. She is also managing director of another of her father's company, Shun Tak Holdings, which operates passenger ferries between Hong Kong and Macau.
Allegations that her father was involved with Chinese organized crime gangs forced MGM Mirage to sell a 50 percent stake in Atlantic City's top casino. The company had to choose between the stake and Macau, the world's biggest gambling market, after state gambling regulators accused Stanley Ho in a report last year of letting the gangs, known as triads, operate and prosper inside his casinos. He denied the charge.
New Jersey state law requires companies seeking gambling licenses to prove they have no associations with "notorious or unsavory persons."
Stanley Ho's son, Lawrence, is co-chairman with Australian billionaire James Packer of Nasdaq-listed Melco Crown Entertainment, which operates two casinos and hotels in Macau.
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