Hong Kong listing may sidestep restive shareholders and raise nearly $8b as SJM squares up to tough competition
Stanley Ho and his associates may exit their 20 per cent stake in Sociedade de Jogos de Macau (SJM) - one of three gaming concessionaires in Macau - by offloading the gambling business into a listed vehicle to avoid continuing opposition from minority shareholders.
Sources said this was one option being floated by bankers to eliminate potential opposition from minority shareholders in Sociedade de Turismo e Diversoes de Macau (STDM) - such as Henry Fok Ying Tung and Mr Ho's sister Winnie Ho - which owns 80 per cent of SJM.
Sources said that while the idea of offloading the SJM stake, possibly into a listed vehicle such as Melco, owned by Stanley Ho's son Lawrence Ho, may not appeal to fund managers, who prefer more direct access in to the booming casino industry in Macau, it is workable.
Other options include a new listing for its offshore arm, STDM Investments, which is 99 per cent-held by STDM and controls 80 per cent of SJM.
While a listing may not take place until the second half of next year, Deutsche Bank has nevertheless been tipped to anchor any deal for SJM with a valuation of about $39 billion in total asset size.