Temasek
Moves into Macao casino
Associating with son of Stanley Ho, whom it rejected for Singapore project. FindSingapore forum.
May 27, 2007

Lai CF
Melco PBL Entertainment Ltd., the gambling joint venture between Hong Kong-based Melco International Development Ltd. and Australia’s Publishing & Broadcasting Ltd, was set to open its first casino Saturday in the Chinese gambling enclave of Macau.

Crown Macau will vie for high rollers with dozens of casinos already stationed in the tiny territory, which surpassed the Las Vegas Strip last year as the world’s gambling centre.

The casino hotel, located on Taipa Island, off the main Macau peninsula where most casinos are clustered, is a 36-story tower featuring 220 gaming tables, 500 slot machines and 216 hotel rooms.

It is the first project launched by US-listed Melco PBL, a casino operator set up to tap the booming gambling industry in Macau - the only place in China where casino gambling is legal.

The joint venture is headed by Australia’s richest man, James Packer, and Lawrence Ho, son of Hong Kong tycoon Stanley Ho.

Executives said Crown aims to focus on the wealthiest gamblers - the top end of the so-called “VIP” market - with what they call the most luxurious gambling environment yet seen in Macau.

“What we want to bring to Macau is the six-star experience,” Crown Macau chief executive Greg Hawkins said. “We’re aspiring to the premium individual players around the world who’ll fly in on
our own aircraft.”

“What we’re building is a property that’s not the biggest, but we think that quality is more important than quantity,” he added.

Some analysts believe Crown’s main rival will be US tycoon Steve Wynn’s casino, which has positioned itself as the plushest gambling venue in Macau since it opened last September.

“Crown appeals to the very high end,” said Merrill Lynch analyst Roger Suyama. “I think they will be quite competitive with the Wynn.”

Melco PBL’s only current source of income is its chain of non-casino sites with slot machines, called the Mocha Clubs.

The company has two more Macau casino projects lined up. The City of Dreams resort, located on the Cotai Strip just across from Las Vegas Sands’ massive Venetian resort, is due to open in phases beginning in late 2008. A third casino is in the early stages of planning.

Jonathan Galaviz, a partner at Globalysis Ltd., a Las Vegas-based consultancy firm, said Crown Macau has the advantage of combining Melco’s local experience with PBL’s relationships in the industry in Australia.

“The Melco-PBL joint venture capitalizes upon Melco’s experience in Asia, combined with PBL’s consumer entertainment legacy,” he said.

Background:
(From Macau Daily business blog)

PBL, a developer and owner of casino gaming and entertainment resort facilities focused exclusively on the Macau market, announced today that its subsidiary, Melco PBL Gaming (Macau) Ltd, has signed its services agreement with New Cotai Entertainment (Macau) Limited to operate the casino portions of the Macau Studio City project, a large scale integrated gaming, retail and entertainment resort development that is targeted to open on the Cotai Strip during 2009.

The project is being developed by a joint venture between eSun Holdings Limited and New CotaiHoldings, LLC, which is primarily owned by investment funds and David Friedman, a former senior executive of Las Vegas Sands.

A percentage of the gross gaming revenues from the casino operations of Macau Studio City will be retained by Melco PBL Gaming.
..
Hmm.......Capitaland took a 20% stake in this Macao Studio City Project.

Melco PBL Gaming (Macau) Limited, I believed, is majority owned by James Packer and Lawrence

Ho, son of Stanley Ho?

And when Stanley Ho had a joint venture with Star Cruise in Macau, all those Hoohaa over Sentosa IR such that Star Cruise got to pull out of Genting International JV for Sentosa IR?

I wonder if Capitaland will now pull out of Macao Studio City project?

And hey, where are all those "do-gooders" protesting against "casino" in Singapore, and do not protest against a TLC (Temasek-linked companies) earning "profits" from a casino resort?

You mean like Singaporeans must behave strictly by not littering in SIngapore, but once crossed the Causeway, anyhow throw rubbish and litter anywhere?

The question is: Should GLC and TLC be allowed to invest in a CASINO-IR in Macau?

Comments (by 'Find Singapore' readers)

szhcornan73
Too much $$ has made SG gov forgotten one thing - GLCs or Temasek is an ICON of Singapore.
How can any reasonable mind and responsible person say "that is a business decision" when
things gone wrong while insist it is independent and distant it by saying it's just a fund manager anaging $$ and reporting to the ministry for the $$ return?
It's time to rationalise Temasek operations and all the GLCs. Signs showing that it holds cans and cans of worms.

Grunt
Let's not gets too way-off the radar for fingerpointing.
1. Capitaland only holds a minority share of 20%. Believe, they can never be the controlling shareholder nor want to be. So got no say.
2. The investment is offshore not local. The problem with Stanley Ho and Star Cruise is it's involvement would be localised and seemed that our good government would be colluding with a triad head to launder money here in Singapore as well as legitimised secret society to be bedfellows. So
if it's not here than it's okay. Not within our control so to say.
3. Lawrence Ho, the son is not the father. The stigma belongs to the dad.
What you expect if the father did crime the son's need to be sentenced? So, both legally and socially the stance should not be biased nor prejudice.
4. Temasek Holdings does not have a 100% stake in Capitaland, but only 42%, though could not confirmed other GLC(s) or the GIC holds any inter-related shares. So, Singapore cannot be largely
labelled and dumped into the pot for cooking.
5. Since, we are building two IRs with casinos and more to come what is wrong with investing in them outside of Singapore which we do not and will not be facing both social and political ill effects.
So, if it is right for the picking and could make money, why not - if we don't, others will grabbed.
The world is revolving, we need to diverse and change with the tide of time both in action and thinking.
Else, we will be considered a stick in the mud, sadly and regretably our political as well as the
bloody local media is truly a freaking dissappointment.

Lai CF
...Well, Grunt, regardless, like the American MNC, the American Laws still apply to them even if
they operated oversea.
E.g. when I was seconded to USA, I was entitled to business ticket, same allowances and same housing standards as if I am an American employed in USA. They informed me that they can't discriminated just because I am from "oversea branch office".
My point is the Singapore still does not have a "Code of Corporate Responsibility" like laws must be the same as whether you are operating in Singapore or elsewhere.
That is, why Temasek Holdings ran into so many political problems as in applying "Singapore Laws" as in "due diligence" before pruchase.
If we applied the same standards as "Due Diligence" as practice in Singapore in buying a conglomerate, will Temasek Holdings then proceed with Shin Corp purchase?
Similarly, like SingTel and ST Multimedia buying mobile telephone companies in Indonesia
Will SIngapore Government allow, say Malaysian MAXIS, to buy up SignTel Mobile, as well as M1?
SImilarly, no doubt Lawrence Ho is Stanley Ho's son, but must Capitaland get invovled in Macau,perhaps for the sake of profits...but how about CORPORATE RESPONSIBILITY?
And Americans are protestign over MGM iJV with Stanley Ho's daughter when MGM Grand was applying for a licence from Nevada Gambling Commission.
Now it is getting interesting.
Can Nevada Gambling Commission over-run Singapore Laws?
If Nevada Gamblign Commission does not clear LV Sands Corp, they cannot operate a casino in Singapore.

Lai CF
CapitaLand confirms HK$ 658.8 million for Cotai.
CapitaLand has confirmed that they have finalised their one-third stake purchase in East Asia Satellite Television (Holdings) Ltd. for the Macao Studio City project on Cotai. They paid a handsome HK$658.8 for the honour.
CapitaLand has also paid another US$20 million in cash to eSun as reimbursement for one-third of a US$60 million working capital that had been previously advanced to Cyber One, which holds a 40 percent stake in MSC.

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