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Stanley Ho transfers casino stake to family
Questions about Mr Ho's ability to lead SJM arose after he was hospitalised in mid-2009 for unspecified reasons, before being released several months later. The 89-year-old was recently replaced as managing director by his fourth wife Angela Leong. -- PHOTO: AGENCE FRANCE-PRESSE
HONG KONG: Billionaire Stanley Ho has transferred the bulk of his stake in flagship SJM Holdings to family members, the firm said yesterday, the latest move in a handover of power as the casino baron struggles with poor health.
The 89-year-old tycoon transferred all but 100 shares of his 31.7 per cent stake in Sociedade de Turismo e Diversoes de Macau, SJM's parent company, to firms controlled by family members, according to a Hong Kong stock exchange filing.
He no longer has an 'attributable interest' in the casino operator, it said.
SJM shares were suspended from trading yesterday, pending the announcement, and closed down about 4 per cent to HK$13.80 after trading resumed.
SJM said there will not be any changes in management or strategic direction of the company.
Mr Ho - a keen ballroom dancer who had four wives and fathered at least 17 children - was hospitalised in mid-2009 for unspecified reasons and released several months later, raising questions about his ability to run the company.
Two of his children, Pansy and Lawrence, run rival concessions with overseas partners in Macau.
The share transfer came less than a month after SJM said Mr Ho's fourth wife, Ms Angela Leong, had replaced him as managing director.
'We are not really surprised by the transfer of shares as he is simply passing on his shares to his family members,' said Mr Aaron Fischer, a gaming analyst at brokerage CLSA.
'If anything, the news might be positive because it removes some uncertainty (about Ho's succession).'
SJM controls about 17 casinos and several hotels in Macau, the only city in China where casino gambling is allowed.
Mr Ho made his first fortune smuggling luxury goods across the Chinese border from Macau during World War II, before securing the only gaming licence in the then Portuguese colony in 1962.
He ran a monopoly on Macau's casinos until 2002, when foreign operators such as United States-based Wynn and Las Vegas Sands were allowed to move in, sparking a boom in the city's revenues.
Macau's casino gambling revenue surged by more than half last year to US$23.5 billion (S$30.2 billion), solidifying its rank as the world's biggest gambling market. The take was about four times higher than the US$6 billion that gamblers are thought to have spent on the Las Vegas Strip last year.
AGENCE FRANCE-PRESSE, ASSOCIATED PRESS
Questions about Mr Ho's ability to lead SJM arose after he was hospitalised in mid-2009 for unspecified reasons, before being released several months later. The 89-year-old was recently replaced as managing director by his fourth wife Angela Leong. -- PHOTO: AGENCE FRANCE-PRESSE
HONG KONG: Billionaire Stanley Ho has transferred the bulk of his stake in flagship SJM Holdings to family members, the firm said yesterday, the latest move in a handover of power as the casino baron struggles with poor health.
The 89-year-old tycoon transferred all but 100 shares of his 31.7 per cent stake in Sociedade de Turismo e Diversoes de Macau, SJM's parent company, to firms controlled by family members, according to a Hong Kong stock exchange filing.
He no longer has an 'attributable interest' in the casino operator, it said.
SJM shares were suspended from trading yesterday, pending the announcement, and closed down about 4 per cent to HK$13.80 after trading resumed.
SJM said there will not be any changes in management or strategic direction of the company.
Mr Ho - a keen ballroom dancer who had four wives and fathered at least 17 children - was hospitalised in mid-2009 for unspecified reasons and released several months later, raising questions about his ability to run the company.
Two of his children, Pansy and Lawrence, run rival concessions with overseas partners in Macau.
The share transfer came less than a month after SJM said Mr Ho's fourth wife, Ms Angela Leong, had replaced him as managing director.
'We are not really surprised by the transfer of shares as he is simply passing on his shares to his family members,' said Mr Aaron Fischer, a gaming analyst at brokerage CLSA.
'If anything, the news might be positive because it removes some uncertainty (about Ho's succession).'
SJM controls about 17 casinos and several hotels in Macau, the only city in China where casino gambling is allowed.
Mr Ho made his first fortune smuggling luxury goods across the Chinese border from Macau during World War II, before securing the only gaming licence in the then Portuguese colony in 1962.
He ran a monopoly on Macau's casinos until 2002, when foreign operators such as United States-based Wynn and Las Vegas Sands were allowed to move in, sparking a boom in the city's revenues.
Macau's casino gambling revenue surged by more than half last year to US$23.5 billion (S$30.2 billion), solidifying its rank as the world's biggest gambling market. The take was about four times higher than the US$6 billion that gamblers are thought to have spent on the Las Vegas Strip last year.
AGENCE FRANCE-PRESSE, ASSOCIATED PRESS
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