ADELSON TO BET ON HK LISTING TO BOOST BALANCE SHEET scmp.com
ADELSON KEEPS THE SHOW ON THE ROAD destination-macau.com
Both Destination Macau and The South China Morning Post cited Sheldon Adelson as saying, "we're actively, aggressively, sincerely looking at an IPO". Speculation has been rife recently that LVS was set to raise US$2billion from a Honk Kong listing, one of several capital-raising options that the company may undertake in the hope of raising up to US$4billion to bolster its balance sheet.
Sheldon and his wife who hold a 50.15% stake in the firm, no doubt feel that the business is dramatically undervalued and may be about to wager that Hong Kong investors will feel the same way. Executives in Singapore told Bloomberg that the company would decide this month whether to proceed with a local share sale of a stake in its Macau business.
Some of the most successful recent Hong Kong initial public offerings have commanded very attractive valuations. Mainland sportswear firm 361 Degrees International sold shares last month in a deal that valued the company at 25 times the most recent year's net profit. By comparison, the Hang Seng Index is currently trading at 16 times earnings.
From a timing standpoint, there are still some big hoops to jump through including getting the Macau government to approve the listing of Macau assets on the Hong Kong stock exchange. Other obstacles include noise that has been made by Stanley Ho and others about Macau assets being stripped for cash to use overseas, political agenda of the new CE in waiting, and approval from Macau lenders.
Speculation of use of proceeds includes: US$2 billion to finish Lot 5&6 in Macau, and US$2 billion to pay down debt at the parent level - which would also allow cash to be injected into the Singapore project (about US$500 million is still needed, according to original estimates).
MACAU IN SHUHAI destination-macau.com
The University of Macau's new campus is to be built on Hengquin Island, surrounded by a moat, and linked by tunnel to Cotai. It will take three years to complete and will be operated by the Macau authorities. It will be interesting to see what else this new initiative of cross-border cooperation can bring.
THE RUSSIANS ARE COMING destination-macau.com
The game of Russian Poker has been applied for registration with the DICJ, so that Macau casinos can begin to offer it. Macau could be the new gaming destination of choice for Russian tycoons given the recent crackdown on casinos by the Kremlin.
DM writes that one Macau casino is said to have discussed the possibility of a Russian-dedicated VIP room with one Russian group.