Casino mogul Stanley Ho Hung-sun's estranged sister, Winnie Ho Yuen-ki, said she would oppose plans to spin off assets of Sociedade de Jogos de Macau (SJM), as more details of the proposed Hong Kong listing emerged yesterday. A preliminary document outlining the planned $15 billion initial public offering, a copy of which was obtained by the South China Morning Post, calls for the injection of all the economic interest of gaming licensee SJM into a Hong Kong-based vehicle, which is expected to be the listing company. Sociedade de Turismo e Diversoes (STDM), which owns 80 per cent of SJM, will control a proportional share in the new company. Mr Ho will directly own 10 per cent, while SJM management executives including Ambrose So, Ng Chi-Shing, and Angela Leung On-kei - Mr Ho's fourth wife - will together take the remaining 10 per cent of the new vehicle. Some market observers were surprised by the inclusion of Ms Leung, who is not a member of SJM's senior management. In fact, it was the first time that her name appeared in SJM's list of shareholders since the company was set up in 2002. Observers added that since Ms Ho only controlled 7.3 per cent of STDM, there was no chance for her to block a vote on the proposed listing during STDM's general meeting scheduled at the end of the month. As part of the listing plan, STDM's 80 per cent stake in SJM will be diluted to 57 per cent from 65 per cent after the issuance of 20 per cent to 30 per cent of new shares in the listing vehicle. Analysts expected listing proceeds at $10 billion to $14 billion, and even as much $20 billion if the new company floats 30 per cent of new shares, for a total valuation of $60 billion to $65 billion. SJM is expected to use the proceeds to fund its Macau projects, including the $6.2 billion entertainment centre, Oceanus, which will include two towers with hotel, office, apartment, shopping and entertainment facilities. Construction is expected to start within 12 months, with completion in 2009. SJM has been burning cash with its three new projects in Macau - New Lisboa Hotel, 16 Ponte and the Fisherman's Wharf - amid growing competition in the enclave's gambling market. Last week, a Macau-based newspaper quoted Mr Ho as saying the boards of both SJM and STDM were backing the listing plans in principle, during their joint meeting on Friday. According to an STDM memorandum, a substantial transaction such as SJM's listing has to be approved by two-thirds of shareholders attending a general meeting, and those present should represent no less than 75 per cent of the company's stock value. Sources close to Ms Ho said they were being intensely lobbied by Mr Ho's camp to support the listing plan.
