THE M3: LVS IPO APPROVAL, GALAXY LAND DEAL

The Macau Metro Monitor. October 30th, 2009.


LAS VEGAS SANDS GETS APPROVAL FOR HONG KONG IPO forbes.com

LAS VEGAS SANDS LOAN FACES BUMPS, MAY PRESSURE IPO reuters.com

Las Vegas Sands Corp. has won approval from the Hong Kong stock exchange to list shares of the company’s Macau operations.  LVS can now move forward with the Hong Kong IPO which is expected to raise US$2 billion or more to help the company pay off its massive debt and revive their construction plans on Cotai.  The company is seeking a further US$2 billion in financing ahead of the offering.  Potential lenders are biding their time but LVS, ideally, would want the financing before the IPO to reassure investors and earn a better valuation.  The high levels of debt and skepticism over the “fickleness” of regulatory bodies in China have negatively impacted the company’s valuation.

GALAXY LAND DEAL SIMMERS destination-macau.com

Following the controversy surrounding the government’s decision to allow Galaxy to transfer the tenancy rights for their Cotai property to a third party while it is being developed, some local lawmakers have done a comparable survey of land values in Fai Chi Kei, near the border with Zhuhai.  They believe that the same-sized piece of land as Galaxy’s there is worth around MOP 175 billion.  Fai Chi Kei allows for the building and sale of residential units, whereas Cotai has been – up until now at least – an area where people are supposed to work rather than live. 

eSUN SUES NEW COTAI destination-macau.com

The Macau Studio City dispute is coming to a head. eSun Holdings, owned by Jack Lam, is suing New Cotai LLC, run by David Friedman, for HK$17 billion.  The bulk of the claim, HK$16.6 billion, is for “inducing or procuring breaches of fiduciary duties”.  HK$689 million is being sought for breaches in their sales and purchase agreement. 

AN APPLE A DAY KEEPS THE DOCTORS… destination-macau.com

The Apple Daily has quoted a “source” as saying that the Ho family is considering suing the doctors that have been taking care of Stanley Ho.  This “source” claims that the patient has never regained consciousness since undergoing brain surgery three months ago.  DM believes it would be quite likely that the Ho family could now sue Apple Daily, since the implication of the report is that they have been lying to the media about their father’s health.