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CR87-p73-business1:SJC-Casino Review 23/12/09 18:23 Page 1
Still no bounce for Nevada
Nevada’s gaming authorities have said that gaming revenues in
October were down 11.6 per cent compared to the previous
year, the 22nd month of continuous decline. Statewide GGR
was $800.3m (E559.7m). On the Las Vegas Strip, the
$426.3m (E297.6m) GGR was 10.3 per cent down on the
previous year. In the two prior months, the decline had slowed
to single digits but now seems to be accelerating again.
Sands China raises US$2.5bn
in IPO but share price flags
The market has determined that those who bought into the IPO of Sands China have made a long-term investment. The share price
fell away immediately after trading began meaning that some will have lost money. For Sands it means a much-needed cash injection.
fundsfound business among others.”
SANDS CHINA He concluded: “This is
an important step in
Las Vegas Sands has raised Macau’s ability to assert
US$2.5bn (E1.4bn) from the itself as an international
Hong Kong Stock Exchange tourist destination.”
after an IPO saw it sell about Construction on the
30 per cent of its new sub- 1.23m sq m complex halted
sidiary Sands China for more than a year ago having
HK$10.38 (US$1.34, been about 65 per cent com-
E0.935), the lowest point of pleted, due to financing
the predicted range. The problems. With the funding
share price has since fluctu- now in place, Adelson told a
ated largely well below the news conference that all his
initial price with analysts planned projects on the
blaming Sands’ substantial Cotai Strip could be finished
debt burden. sooner than expected. He
Sands China raised more said: “We could finish all the
money than its great rival properties easily within five
both in Macau and in Las years. It depends on how fast
Vegas, Wynn Resorts, which we get approvals from the
launched its own IPO in government.”
October bringing in Adelson, against the
US$1.6bn (E1.1bn). expectations of many, has
However, Wynn’s shares
Sands will use some of the money it has raised to complete its Cotai Strip resort opposite
managed to keep control of
were sold at the top end of
the Venetian Macau, which includes hotels under the Shangri-La, Sheraton and Traders
Sands, despite its massive
the range at HK$10.08 brands. Construction halted last year, leaving rather an eyesore. debt exposure due to ambi-
(US$1.30, E0.908). Wynn tious development plans in
Macau’s shares have also Las Vegas, Macau and Singa-
dropped since their launch. restarting the stalled devel- progress we have made in Macau. The increased greater variety of product pore, and the global eco-
The IPO is one of Sands opment project on the Cotai helping diversify Macau’s number of hotel rooms, from price options for consumers nomic turndown. The
China’s fundraising initia- Strip, over the road from the economy and further estab- prominent hotel brands and give us additional capac- pressure has been relieved
tives: the company picked company’s flagship Venetian lishing it as an international Shangri-La, Traders, Sheraton ity to further grow our somewhat by the easing of
up another US$600m Macau resort. leisure and business destina- and St Regis, will provide a meeting and convention the market in Macau; Adelson
(E419m) in a pre-IPO “With this public offering, tion,” said Sheldon Adelson. also believes Las Vegas could
exchangeable bond financ- in combination with our He continued: “Our ability recover to “normal levels” by
ing transaction completed in project financing efforts, we to add more properties to 2011 and he will open one
September and also tapped have already embarked on the Cotai Strip will enhance of the two Integrated Resorts
into US$1.75bn (E1.22bn) of the initial stages of restarting visitation from all parts of in Singapore next year, the
project financing which, the construction of our the Asia-Pacific region and Marina Bay Sands, all of
about a fifth of the proceeds developments on the Cotai significantly increase the which will help rebalance
from the IPO, will go into Strip and continuing the overall length of stay in the business model.
Korean proposal kick starts
Christmas bonus for
Mimosa bid process
GPI shareholders
fourthtimelucky lenge’: it is asking any other is likely by March or April.” thanksamillion $19m (E13.2m) in cash and
MIMOSA LEISURE ESTATE interested parties to try and Last year a deal to sell the GAMING PARTNERS INTERNATIONAL marketable securities,
improve on the bid made by a estate fell at the last hurdle along with little debt. This
The current owner of Korean consortium Hanwool when bid winner Water- Franco-American gaming $1m (E698,000) payment
Mimosa Leisure Estate, the I&D to lease, develop, operate front Philippines, which equipment manufacturer reflects our past success
Clark Development Corpo- and manage the estate. If there was to pay P1.5bn (E22.5m) Gaming Partners Interna- and does not impair our
ration (CDC), has received is no better offer, the consor- for the resort, failed to get a tional (GPI) paid its share- ability to pursue strategic
an unsolicited proposal for tium, made up of I&D Venture casino licence and conse- holders a special dividend initiatives.”
the resort, which includes a Investment, Daewong Phar- quently did not make the just before Christmas of
casino. The company has maceutical and Kangwon payment on time. US$0.125 per share.
tried to sell the venue three Land, will win. This time bidders must be President and CEO Greg
times in the past six years CDC’s assistant vice-pres- pre-qualified by PAGCOR, Gronau said: “The company
but without success, so this ident Bernardo Angeles Jr the government-owned decided that it was in the
unexpected bid has been told local press that several the determination of the agency that is both the regu- shareholders’ best interest
welcomed. firms has already expressed original proponent is fin- lator and the country’s to pay [this] special divi-
CDC is using the opportu- an interest in taking part in ished. There are [other] largest operator. The bids are dend. We have a strong
nity to set up a ‘Swiss Chal- the process. “The first stage - interested parties. Awarding due before 21 January 2010. cash position with over
January 2010 • businessnews 73
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