Another Stanley Ho And Wnnie Ho Round
Written on December 13, 2006 by admin
And so the story goes on…
The last round saw Madame Winnie Ho victorious, so obviously she believes she is riding high and is ready for the next punch! Apparently Dr.Stanley Ho, through STDM, which owns about 80% of SJM casinos, owns Winnie Ho a cool US$385 million, this is part the last 5-years dividends due to her as she is 8% shareholder in the Macau company.
As I like doing the numbers, let’s work out STDM |SJM profits for the past 5-years, well it’s about US$4.8 billion, or about US$1 billion per year. Now, you can see why everybody is falling heads over heels to join the game in Macau.
Anyway, back to the grand 82-year old Madame Winnie Ho, who has decided that after 30 or so lawsuits, that it is about time for her older brother Stanley, who just celebrated his 85th birthday, to come clean. She suggested that he should stop bullying and walking over her.
Her offer though is an incredible one and that is to buy out Stanley’s 25% stake in STDM. Why the heck she thinks he would sell that stake to her would be beyond me, but than again stranger things have happened in Macau. Even if he did, the price tag must be at least 5 x profits at US$1 billion per year, so she would be looking at least at US$1.25 billion to buy out his stake.
This ongoing saga surely must hurt Dr.Stanley Ho, as he has been unable to list STDM, as they planned raise US$1.9 billion through a share sale. These funds are badly needed as STDM needs to refurbish and upgrade their existing casinos.
To stay ahead of the increased competition in Macau, they also need to build new ones, with Babylon Casino opening later this month and the Grand Lisboa well underway due to open mid 2007.
More to follow…
Technorati Tags: macau, Stanley Ho, Winnie Ho
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