GENTING, Stanley And Chua – The New Three Musketeers

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Jan 23 2007
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Malaysian gaming and resorts conglomerate Genting Group (KLSE : GENTING, stock-code 3182) has finally gained a foothold in the casino business in Macau via a tie-up with gambling mogul Stanley Ho, who in turn will take up a stake in its associated company Star Cruise Ltd (SIN : S21). Star Cruises, an associate company of Genting Group, said it intends to build a hotel in the gambling haven of Macau through its subsidiary, New Orisol.
Genting group said it was venturing into Macau via the acquisition of a parcel of land in Lago Nam Van on the shores of Nam Van Lake in downtown Macau for HK$1.47 billion (RM659.72 million). New Orisol Investment Ltd is buying 75% of Macau Land Investment Corporation, which owns the land while Genting International (SIN : G13) owns the balance of 25% in New Orisol. The group intends to build a boutique hotel called Resorts World by 2009, in which will be sited the casino that will be owned and operated by Ho, while Star Cruises will provide the facilities and services.
Star Cruises had signed an agreement with Ho’s gaming company Sociedade de Jogos de Macau, which will operate a casino in the hotel. The corporate deal will see Stanley Ho, Malaysian businessman Chua Ma Yu and three other parties ending up with a 6.99% stake or 510 million shares in the enlarged share capital of Star Cruises under subscription and share option agreements.
Under the subscription agreement for 255 million Star Cruises shares for HK$583.95 million or HK$2.29 each, Stanley Ho via Profit Boom Investment Ltd will subscribe for 120 million shares, Chua 42 million shares, SJM shareholder and director Leong Angela On Kei (40 million), Win Ever Investment Ltd (40 million) and Ideal Collection Assets Ltd (12.5 million). The option shares granted to the five parties are 255 million at a premium of 28 Hong Kong cents each or a total of HK$71.4 million. Its exercise price is HK$3 for each Star Cruises share or a total of HK$765 million.
Star Cruises said the subscription and option shares represent 7.52% of existing paid-up capital or 6.99% of its enlarged capital, and the proceeds would be used to fund its S$5.2 billion (RM11.84 billion) Sentosa Integrated Resort.
Reuters reported that Star Cruises and Genting International would buy a controlling stake in the yet-to-built casino in Macau. The report said the deal would give octogenarian Ho a stake in Singapore’s casino resort while offering Genting group access to the lucrative China gambling market.

It seems whenever there’s a huge corporate teaming-up which initially couldn’t be worked-out, you’ll find Chua Ma Yu around pulling the magic strings. In the previous Southern Bank fight with Bumiputra-Commerce Holdings, Chua, via his direct 17.5 percent stake in Killinghall (which owned 16.4 percent of Southern Bank), master-minded the removal of four of Southern’s seven directors (namely Tengku Zaitun Tengku Mahadi, Ian Craig Buchanan, Nicholas Spiro Zefferys and Sieh Lee Mei Ling.) and approved the Bumiputra-Commerce bid via shareholders EGM. And now, when everyone thought Genting can never set its foot on Macau soil and Stanley lost his bid in the Singapore’s Sentosa deal, this Chua’s name came out and I suspect he did it again with his golden touch.
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