Shares surge after Ho says family tussle resolved
Source: Agencies |
March 12, 2011, Saturday
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Print Edition
Print Edition
Shares in Macau gaming magnate Stanley Ho's SJM Holdings Ltd surged as much as 8 percent yesterday after the chairman of the enclave's biggest casino operator said he had fully resolved a dynastic legal tussle.
The tycoon's spat with factions of his family, which includes four wives and 17 known children, over a controlling stake in his multi-billion empire, made headlines around the world, with videos of the ailing octogenarian appearing on YouTube since the dispute began in January.
SJM, one of the six licensees to operate in the world's largest gambling destination, saw its shares slump as much as 26 percent to a low of HK$10.58 (US$1.35) by the end of February since the news of the family feud broke.
The casino operator, valued at around US$8 billion, is expected to report its results next week. Analysts, who are mostly bullish on the stock, warn that succession issues are likely to linger, given the tumultuous back and forth between the 89-year-old and his family.
Ho's gambling empire controls around 30 percent of the market in Macau, which has been transformed in recent years from a sleepy outpost on the South China Sea into a pulsating maze of neon lights, dwarfing rival Las Vegas in revenue streams.
"We are getting more bullish but I think it will take some time for investors to regain confidence, given all this back and forth with lawsuits," said Kenneth Fong, a JP Morgan analyst.
In January, Ho sought to sue members of his family for issuing new shares in Lanceford - the main holding company for his interest in SJM - without his consent, effectively diluting his stake to nothing.
On Thursday, Ho said he had filed a note of discontinuance on February 21, dismissing a legal case against members of his second and third families.
His statement made no mention of whether the shares issued by Ho's family members would be returned or allocated amongst the extended Ho clan.
The tycoon's spat with factions of his family, which includes four wives and 17 known children, over a controlling stake in his multi-billion empire, made headlines around the world, with videos of the ailing octogenarian appearing on YouTube since the dispute began in January.
SJM, one of the six licensees to operate in the world's largest gambling destination, saw its shares slump as much as 26 percent to a low of HK$10.58 (US$1.35) by the end of February since the news of the family feud broke.
The casino operator, valued at around US$8 billion, is expected to report its results next week. Analysts, who are mostly bullish on the stock, warn that succession issues are likely to linger, given the tumultuous back and forth between the 89-year-old and his family.
Ho's gambling empire controls around 30 percent of the market in Macau, which has been transformed in recent years from a sleepy outpost on the South China Sea into a pulsating maze of neon lights, dwarfing rival Las Vegas in revenue streams.
"We are getting more bullish but I think it will take some time for investors to regain confidence, given all this back and forth with lawsuits," said Kenneth Fong, a JP Morgan analyst.
In January, Ho sought to sue members of his family for issuing new shares in Lanceford - the main holding company for his interest in SJM - without his consent, effectively diluting his stake to nothing.
On Thursday, Ho said he had filed a note of discontinuance on February 21, dismissing a legal case against members of his second and third families.
His statement made no mention of whether the shares issued by Ho's family members would be returned or allocated amongst the extended Ho clan.
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