How long will it take for the so-called smart business people to realise that Aquis is gone and is a "no win" situation.
The CEO of the Chamber of Commerce, Tourism bodies and Cairns Mayor are still putting forward a wish list for 2015 and the number one is Aquis which probably will never see a stone laid in the cane fields near Yorkeys Knob.
Tony Fung had the opportunity to build Aquis but he refused to attend 3 FORMAL meetings and wouldn't complete the probity, instead he bought a $6 million dollar casino that doesn't even have pokies and never likely to as the local government has a bill on the table to further reduce pokies in Canberra.
He even intended to purchase the Accor International Hotel but that also fell through then the a news item appeared in the Cairns Post January 28, 2015 .
FRENCH international hotel giant Accor has highlighted the failure by Hong Kong billionaire Tony Fung to buy the Reef Hotel Casino in Cairns, in its latest financial report.
While the Paris-based conglomerate paints a rosy picture about global tourism, it noted it was unable to finalise the sale of its stake in Reef Hotel Casino in Australia, valued at $85 million, "after the Australian authorities delivered an unfavourable opinion to the buyer".
Mr Fung’s offer to acquire Australian Securities Exchangeoperator Reef Casino Trust for $217 million lapsed on November 28. Instead he has bought Casino Canberra for $6 million, will trade it for a year after investing in upgrades, before listing it with Aquis on the Hong Kong Stock Exchange to raise money for the $8.15 billion Yorkeys Knob venture.
Accor is the largest hotel operator in the tropics.
So unless a miracle occurs Aquis is gone along with Aquis Facebook and offices locked and vacated.
People need to look at positive prospects for Cairns and realise that we are a tourist destination and look at ways of improving of how Cairns can move ahead.
The other important factor is that the Chamber of Commerce needs to show more support for the local businesses rather than drooling over Aquis which if built would not have benefitted Cairns financially because all money made within the resort/casino would go back to Hong Kong so financially we wouldn't be any better off.
The election:
The government is offering money during this campaign as if it is coming directly off a printing press yet the state debt has not been reduced so where is the money coming from? well let's put some ideas forward:
(1). Taxes.
(2). Increase electricity charges.
(3). Council rates.
(4). Water rates.
(5). Increased transport charges
(6). Increased car registration charges.
(7). Increased licence charges.
there are a number of other charges that we could think of but that's enough to give anyone a headache.
Why can't politicians be honest and say to the residents "we can't make promises that we can't keep but we will where practicable offer money for the most urgent items".
The bike path from Cairns to Palm Cove is not an urgent and could be delay for some years so that money could be used for road upgrades or any other urgent works.
The Premier has gone beserk with the money that he's offering especially for the Sth East corner but bugger everywhere else, Campbell Newman money doesn't buy everything and to make the statement that any electorate where the LNP candidate loses it's seat may not get what was promised and Independent Peter Wellington is reporting the matter to police and Electoral office for investigation.
Mr Newman has refused to name a likely successor, sticking to his claim that if he loses Ashgrove the LNP loses government.
Thursday, January 29, 2015
Wednesday, January 28, 2015
Thank god the elections are coming to an end
The state elections are on Saturday January 31, 2015, and after listening to the candidates forum one has to agree with this tune.
Produced by Barry.
Produced by Barry.
 |
| These pollies say some funny things |
Monday, January 19, 2015
Casino Canberra is sold to Hong Kong billionaire Tony Fung
For those who have not read the Fung purchase of the Canberra Casino I have attached the following news item:
As reported in
The Sydney Morning Herald
December 23, 2014
The sale of Canberra's ailing casino has been completed, with Hong Kong billionaire Tony Fung set to pay as much as $6 million for the property and associated gaming license.
ACT Gaming and Racing Minister Joy Burch said the transfer of ownership of Casino Canberra from Casinos Austria International to Aquis Canberra had been approved by the territory's Gambling and Racing Commission, after months of speculation.
Aquis said it would reveal "an exciting vision" in plans for the casino early in 2015, following years of decline for the Binara Street facility.
Last week the company's resort arm was granted environmental approval by the Queensland Government for its proposed $8.15-billion resort and casino development north of Cairns.
Tuesday's purchase is expected to see Aquis float on the Hong Kong Stock Exchange in 2016, in an effort to help raise debt and equity to fund the massive Queensland project.
The ban on poker machines inside the casino has been blamed for reduced opening hours, decline in appearance and staff lay-offs in recent years.
Ms Burch said the licence transfer would not change the restrictions on poker machines, currently only allowed in Canberra clubs.
Mr Fung and his son Justin successfully negotiated a $3-million discount on the Canberra sale price in September and have talked with new ACT Chief Minister, Andrew Barr, and the government about other investment opportunities in the territory in recent months.
A gaming licence for the proposed Queensland resort at Yorkey's Knob is still to be granted by the Queensland government. The plan includes 7500 hotel rooms, two casinos, a convention centre, a golf course and an artificial lake.
The Canberra deal had already been approved by the Australian Competition and Consumer Commission and the federal government's Foreign Investment Review Board in recent months.
Ms Burch said the decision to approve the transfer of licence had not been taken lightly.
"It follows an extensive probity investigation undertaken by the Gambling and Racing Commission, in consultation with the Queensland Office of Liquor and Gaming Regulation," she said.
The probity investigation had not revealed any information to prevent the transfer from going ahead and the new owner.
Ms Burch said Mr Fung had "demonstrated his delight at the opportunity to invest in Canberra".
"The sale is a clear demonstration of the interest being shown by overseas investors in Canberra. It is a vote of support for our economy and indeed the Canberra community," she said.
As part of the deal, Aquis Canberra will contribute to the government's fund for problem gambling, to help with research, self-help and community education.
In the 2013-14 financial year, the fund contributed more than $12.7 million to community organisations, which was 13.27 per cent of net gaming revenue.
The ACT Government's tax base is a key beneficiary of gaming machine revenue.
Last month an Aquis spokesman said the company was committed to long-term ownership of the capital casino and was "looking at various options for improvements and upgrades".
Justin Fung told Fairfax Media the new ownership could turn around the casino's slide in business.
The company's ambitious plans for Australia's casino market hit a snag in November when a $200-million bid for Queensland's Reef Casino Trust, owner of Cairns' Reef Hotel and Casino complex, collapsed after a deadline was missed.
As reported in
The Sydney Morning Herald
December 23, 2014
Tom McIlroy
Legislative Assembly reporter at The Canberra Times
 | ||||||||||
| Tony and Justin Fung at the Yorkeys Knob site where Aquis has been proposed. |
ACT Gaming and Racing Minister Joy Burch said the transfer of ownership of Casino Canberra from Casinos Austria International to Aquis Canberra had been approved by the territory's Gambling and Racing Commission, after months of speculation.
Aquis said it would reveal "an exciting vision" in plans for the casino early in 2015, following years of decline for the Binara Street facility.
Last week the company's resort arm was granted environmental approval by the Queensland Government for its proposed $8.15-billion resort and casino development north of Cairns.
Tuesday's purchase is expected to see Aquis float on the Hong Kong Stock Exchange in 2016, in an effort to help raise debt and equity to fund the massive Queensland project.
The ban on poker machines inside the casino has been blamed for reduced opening hours, decline in appearance and staff lay-offs in recent years.
Ms Burch said the licence transfer would not change the restrictions on poker machines, currently only allowed in Canberra clubs.
Mr Fung and his son Justin successfully negotiated a $3-million discount on the Canberra sale price in September and have talked with new ACT Chief Minister, Andrew Barr, and the government about other investment opportunities in the territory in recent months.
A gaming licence for the proposed Queensland resort at Yorkey's Knob is still to be granted by the Queensland government. The plan includes 7500 hotel rooms, two casinos, a convention centre, a golf course and an artificial lake.
The Canberra deal had already been approved by the Australian Competition and Consumer Commission and the federal government's Foreign Investment Review Board in recent months.
Ms Burch said the decision to approve the transfer of licence had not been taken lightly.
"It follows an extensive probity investigation undertaken by the Gambling and Racing Commission, in consultation with the Queensland Office of Liquor and Gaming Regulation," she said.
The probity investigation had not revealed any information to prevent the transfer from going ahead and the new owner.
Ms Burch said Mr Fung had "demonstrated his delight at the opportunity to invest in Canberra".
"The sale is a clear demonstration of the interest being shown by overseas investors in Canberra. It is a vote of support for our economy and indeed the Canberra community," she said.
As part of the deal, Aquis Canberra will contribute to the government's fund for problem gambling, to help with research, self-help and community education.
In the 2013-14 financial year, the fund contributed more than $12.7 million to community organisations, which was 13.27 per cent of net gaming revenue.
The ACT Government's tax base is a key beneficiary of gaming machine revenue.
Last month an Aquis spokesman said the company was committed to long-term ownership of the capital casino and was "looking at various options for improvements and upgrades".
Justin Fung told Fairfax Media the new ownership could turn around the casino's slide in business.
The company's ambitious plans for Australia's casino market hit a snag in November when a $200-million bid for Queensland's Reef Casino Trust, owner of Cairns' Reef Hotel and Casino complex, collapsed after a deadline was missed.
Hong Kong Broker now asking the question....
There is now a Hong Kong broker asking how will it be funded as reported in the Cairns Post January 19, 2015 under the heading:
Hong Kong-based brokers question how Aquis at Cairns will be funded
Full story at: Hong Kong-based brokers question how Aquis at Cairns will be funded
This statement by the broker backs up the concerns of the probity Commissioner David Ford who further outlined his concerns:
“Obviously, there are a number of factors which affect the length of probity processes including whether the applicant has been similarly licensed elsewhere, their corporate structure and source of funds. “I would note that Aquis has had little corporate history in Australia, has not been similarly licensed elsewhere and is sourcing a significant proportion of its funds from offshore".
Tony Fung bought the Canberra Casino for $6 million dollars and now has stated that he intends to spend another $40 million dollars to upgrade the casino which does not have poker machines and the local government has legislation being presented early 2015 to further decrease the poker machines in Canberra....: http://www.canberratimes.com.au/act-news/calls-for-pokies-as-casino-cuts-jobs-hours-20131031-2wm3w.html so what is his financial gain to be of any benefit for him and would any major investor in Hong Kong jump up and down to give any funds based on the low rated Canberra Casino he intends to list on the Hong Kong stock exchange.
Again he (fung) failed to complete the Probity requirements and failed to turn up to 3 "FORMAL" meetings so why should he be given a gaming licence.
Mr Fung walked away and has failed the residents of Cairns and now without a word even to the media the Aquis Facebook has been shutdown, Aquis office have closed and it's been reported that his luxury suite has also been vacated.
To all those who were shouted a free round trip Macau you were really taken for a ride and everyone notices that some of these people are still crying out for Aquis to go ahead but they seem to be doing very little for the local businesses which are the most important to Cairns.
The Probity Commissioner should say thanks but no thanks.
The former Mayor of Cairns stated the following in a recent interview:
What is your outlook for Cairns?
KB: I’m always hopeful because that’s the optimist in me. The realist in me also says that we’re still struggling.
“We appear to have put all our eggs in the basket of foreign Chinese investment.”
KB: Whilst we can absorb this investment, and as a community we are good at accepting of it, we still need to be careful. It appears to be an “Aquis or bust” mentality here. Whilst it appears to be a huge project, I personally don’t believe that it’s going to occur on the scale that has been promoted. Nor do I believe it will occur in the timeframe promoted. I hope I am proven wrong. The numbers that we’re talking about are mind-boggling, and to me the logic is not stacking up when I do the sums.
KB: Wiser heads than mine in the community are already asking questions about whether this is in fact achievable in the time frame, or are we being duped? I am noting a word of caution here. As a community we need to have a plan B and a plan C. But I don’t see a plan B or a plan C. I just see plan A.
Full interview here: http://www.cairnslifemag.com.au/cover/kevin-byrne-on-life-family-and-economics/
Hong Kong-based brokers question how Aquis at Cairns will be funded
Full story at: Hong Kong-based brokers question how Aquis at Cairns will be funded
This statement by the broker backs up the concerns of the probity Commissioner David Ford who further outlined his concerns:
“Obviously, there are a number of factors which affect the length of probity processes including whether the applicant has been similarly licensed elsewhere, their corporate structure and source of funds. “I would note that Aquis has had little corporate history in Australia, has not been similarly licensed elsewhere and is sourcing a significant proportion of its funds from offshore".
Tony Fung bought the Canberra Casino for $6 million dollars and now has stated that he intends to spend another $40 million dollars to upgrade the casino which does not have poker machines and the local government has legislation being presented early 2015 to further decrease the poker machines in Canberra....: http://www.canberratimes.com.au/act-news/calls-for-pokies-as-casino-cuts-jobs-hours-20131031-2wm3w.html so what is his financial gain to be of any benefit for him and would any major investor in Hong Kong jump up and down to give any funds based on the low rated Canberra Casino he intends to list on the Hong Kong stock exchange.
Again he (fung) failed to complete the Probity requirements and failed to turn up to 3 "FORMAL" meetings so why should he be given a gaming licence.
Mr Fung walked away and has failed the residents of Cairns and now without a word even to the media the Aquis Facebook has been shutdown, Aquis office have closed and it's been reported that his luxury suite has also been vacated.
To all those who were shouted a free round trip Macau you were really taken for a ride and everyone notices that some of these people are still crying out for Aquis to go ahead but they seem to be doing very little for the local businesses which are the most important to Cairns.
The Probity Commissioner should say thanks but no thanks.
The former Mayor of Cairns stated the following in a recent interview:
What is your outlook for Cairns?
KB: I’m always hopeful because that’s the optimist in me. The realist in me also says that we’re still struggling.
“We appear to have put all our eggs in the basket of foreign Chinese investment.”
KB: Whilst we can absorb this investment, and as a community we are good at accepting of it, we still need to be careful. It appears to be an “Aquis or bust” mentality here. Whilst it appears to be a huge project, I personally don’t believe that it’s going to occur on the scale that has been promoted. Nor do I believe it will occur in the timeframe promoted. I hope I am proven wrong. The numbers that we’re talking about are mind-boggling, and to me the logic is not stacking up when I do the sums.
KB: Wiser heads than mine in the community are already asking questions about whether this is in fact achievable in the time frame, or are we being duped? I am noting a word of caution here. As a community we need to have a plan B and a plan C. But I don’t see a plan B or a plan C. I just see plan A.
Full interview here: http://www.cairnslifemag.com.au/cover/kevin-byrne-on-life-family-and-economics/
Wary High-Rollers Shy Away From Macau's Casinos
China's Corruption Crackdown Deals Revenue Blow to World's Gambling Capital; Hong Kong Luxury Malls Also Suffer.
 |
| A dealer spreads a deck of cards on a baccarat table during a gambling expo in Macau on May 20. |
HONG KONG—Beijing's intensifying crackdown on corruption is hitting two of the playgrounds of China's elite: the VIP rooms at Macau casinos and luxury shopping malls in Hong Kong.
Casino revenue in the world's gambling capital fell for a second-straight month in July, dropping 3.6% from a year earlier as high-rollers from mainland China stayed away from the tables in Macau. In Hong Kong, sales of jewelry, watches and other luxury items dropped 28% in June, marking a fifth-straight monthly decline.
The retreat in Macau has been driven by the same VIP gamblers that powered the city's rise to the top in recent years. Revenue from these gamblers, typically rich Chinese who are brought to Macau by middlemen known as junkets, fell by between 14% and 18% in July, according to analysts at UBS. By contrast, in 2010 VIP revenue jumped by 70%.
Across the Pearl River Delta in Hong Kong, the wealthy mainlanders who have packed the city's high-end stores have also been holding back. Sales of luxury goods fell by nearly a third in the second quarter, including a 40% decline in April.
Analysts and industry executives said the Chinese government's fight against corruption is hitting both industries hard. With Beijing keeping a closer eye on conspicuous consumption and capital flight, being seen buying 10 diamond-encrusted watches or throwing millions at a baccarat game isn't recommended.
Though the anticorruption campaign began in 2012, President Xi Jinping raised the stakes significantly in the past week with the announcement of an official investigation into Zhou Yongkang, the country's former domestic security chief and one of the nation's top nine leaders until he retired in 2012.
A dealer spreads a deck of cards on a baccarat table during a gambling expo in Macau on May 20. European Pressphoto Agency
"This anticorruption crackdown in China is much more widespread and deeper than the VIP community had anticipated and as a result there could be prolonged weakness in the market," said Union Gaming Research analyst Grant Govertsen.
The last time Macau recorded revenue declines was in 2009 during the global financial crisis, but that was just a blip in Macau's stunning growth. The former Portuguese territory generated $45 billion in gambling revenue last year, or seven times that of the Las Vegas Strip. VIPs who came primarily through junkets accounted for nearly two-thirds of that revenue.
"The ongoing anticorruption campaign is placing considerable focus on the illicit transfer of Chinese funds overseas. Macau is a significant factor in this," said Steve Vickers, a consultant who has investigated junkets and formerly led the Royal Hong Kong Police Criminal Intelligence Bureau.
Previously junkets had been most visibly affected by the campaign in late 2012 when Chinese police detained backers of one of Macau's then-largest junkets on suspicions they had ties to Bo Xilai, a prominent politician jailed in the crackdown. The crackdown has increased with Mr. Xi's rise.
"All of a sudden the world is changing," said one top casino executive who deals with junkets. "The central government is much more concerned about junkets getting out of line." The situation is worrying both junket operators and their VIP customers, who "don't want to be involved with people who could get them in trouble," the person said.
Macau, the only place in China where casino gambling is legal, has long relied on junkets to bring in high-spending gamblers from the mainland, issue them credit and collect players' debts in exchange for commissions from casinos. The system took root because Beijing limits how much money Chinese can take out of the mainland and doesn't consider gambling debts valid there.
The poor performance in Macau's VIP market has hit casinos. The Macau units of Las Vegas Sands Corp. LVS +0.09% Las Vegas Sands Corp. U.S.: NYSE $54.89 +0.05 +0.09% Jan. 16, 2015 4:02 pm Volume (Delayed 15m) : 4.90M AFTER HOURS $55.18 +0.29 +0.53% Jan. 16, 2015 7:27 pm Volume (Delayed 15m) : 18,677 P/E Ratio 16.48 Market Cap $44.02 Billion Dividend Yield 3.64% Rev. per Employee $305,640 01/16/15 Sands China CEO to Step Down M... 01/14/15 Caesars Hobbled by Absence in ... 01/03/15 Casino Operator Melco Crown Ap... More quote details and news » and Wynn Resorts Ltd. WYNN -0.45% Wynn Resorts Ltd. U.S.: Nasdaq $146.99 -0.66 -0.45% Jan. 16, 2015 4:00 pm Volume (Delayed 15m) : 945,968 AFTER HOURS $146.85 -0.14 -0.09% Jan. 16, 2015 4:47 pm Volume (Delayed 15m) : 11,803 P/E Ratio 17.73 Market Cap $14.90 Billion Dividend Yield 4.08% Rev. per Employee $352,460 01/14/15 Caesars Hobbled by Absence in ... 01/09/15 When the CEO Is a Big Investor... 12/17/14 Chinese President to Visit Mac... More quote details and news » both posted earnings last month that missed already-lowered analyst projections. The territory's four other gambling operators, including a unit of MGM Resorts International, are likely to also post weak earnings, according to analyst forecasts.
Casino companies' share prices are all in the red for the year, with worst-performer SJM Holdings Ltd. 0880.HK -4.23% SJM Holdings Ltd. Hong Kong $10.86 -0.48 -4.23% Jan. 19, 2015 9:56 am Volume (Delayed 15m) : 2.42M P/E Ratio 7.84 Market Cap $64.14 Billion Dividend Yield 4.05% Rev. per Employee $2,592,170 01/16/15 Sands China CEO to Step Down M... 01/12/15 Macau Police Arrest Top Hotel ... 01/02/15 Macau Gambling Revenue Suffers... More quote details and news » losing 21% compared with a 5.3% rise in Hong Kong's benchmark index. In recent years, casino stocks were among the best performers in the world. The share prices of Nasdaq-listed Melco Crown Entertainment Ltd. MPEL -3.39% Melco Crown Entertainment Ltd. ADS U.S.: Nasdaq $22.51 -0.79 -3.39% Jan. 16, 2015 4:00 pm Volume (Delayed 15m) : 5.75M AFTER HOURS $22.45 -0.06 -0.24% Jan. 16, 2015 4:44 pm Volume (Delayed 15m) : 13,740 P/E Ratio 16.80 Market Cap $12.45 Billion Dividend Yield 1.27% Rev. per Employee $423,597 01/14/15 Caesars Hobbled by Absence in ... 01/04/15 Corporate Watch: News Digest 01/03/15 Casino Operator Melco Crown Ap... More quote details and news » as well as Hong Kong-listed MGM China Holdings Ltd. 2282.HK -1.87% MGM China Holdings Ltd. Hong Kong $17.88 -0.34 -1.87% Jan. 19, 2015 9:55 am Volume (Delayed 15m) : 643,000 P/E Ratio 11.56 Market Cap $69.24 Billion Dividend Yield 3.13% Rev. per Employee $4,482,680 12/17/14 Chinese President to Visit Mac... 12/01/14 Macau Gambling Revenue Slides More quote details and news » and Galaxy Entertainment Group Ltd. 0027.HK -3.52% Galaxy Entertainment Group Ltd. Hong Kong $37.00 -1.35 -3.52% Jan. 19, 2015 9:56 am Volume (Delayed 15m) : 7.15M P/E Ratio 13.93 Market Cap $162.79 Billion Dividend Yield N/A Rev. per Employee $4,601,630 01/14/15 Caesars Hobbled by Absence in ... 01/07/15 Stock Selloff Eases in Asia 01/03/15 Casino Operator Melco Crown Ap... More quote details and news » all more than doubled last year.
But casino executives say their futures remain bright as lower-end gamblers from China continue to flood their properties. Since 2010, gambling revenue from Macau's mass market has been rising by about a third each year.
Mass-market players are about four times more profitable than VIP players for casinos, which must split the high-roller spoils with the junkets. Even though mass market accounts for 37% of total Macau gambling revenue, it generates 70% of operating profit, according to Las Vegas Sands' second-quarter earnings presentation.
To capitalize, casinos have been shifting resources toward the mass market. Sands, for example, said it cut the number of its VIP tables in Macau by 28% to an average of 377 tables for the quarter ended June 30 and reallocated them to mass-market players.
In Hong Kong, China's corruption crackdown is hitting those wealthy mainlanders who prefer shopping sprees to gambling. Business and government travelers from China have typically been the "big spenders" here, said Kevin Lai, an analyst at Daiwa Capital Markets. He said in earlier times they would easily spend hundreds of thousands of Hong Kong dollars on fine dining and half a million on luxury items during a single trip. But now they're gone. "They got arrested or they're hiding or they just vanished," he said.
On Wynn Resorts' second-quarter earnings call on Tuesday, Chief Executive Steve Wynn noted luxury watch sales are also down in his Macau casino. A top Macau executive from a popular Western luxury brands said the company is seeing the same trends as casinos: faster growth among non-VIP customers.
—Gregor Stuart Hunter
and Jacky Wong
contributed to this article.
and Jacky Wong
contributed to this article.
Melco Crown Applies to Delist From Hong Kong Exchange
Casino Operator Faults Compliance Costs and Limited Fundraising Opportunities.
By
Dual-listed casino operator Melco Crown Entertainment Ltd. on Friday applied to delist from the Hong Kong Stock Exchange just three years after listing its shares in the Chinese financial hub, citing limited fundraising opportunities and onerous compliance obligations and costs.
The gambling company, which operates casinos in Macau and a newly opened property in the Philippine capital of Manila, said it would maintain its primary listing of American depositary shares on the Nasdaq Stock Market, where Melco Crown has been listed since December 2006.
The news comes after a disastrous year for casino stocks caused by a sharp downturn in Macau, the world’s largest gambling market, as China’s corruption crackdown scared off high rollers. Shares of Macau’s six licensed casino operators fell an average of 40% in 2014 as Macau experienced its first recorded annual fall in gambling revenue—a 2.6% drop after a decade of booming growth.
Galaxy Entertainment Group Ltd. and Las Vegas Sands Corp. unit Sands China Ltd.—the only two casino stocks that are part of Hong Kong’s blue-chip Hang Seng Index—were two of the three worst-performing stocks on the index last year, weighing down the entire market. Galaxy sank 37% and Sands China declined 40%. Both listed Melco Crown entities, meanwhile, fell about 35% in 2014.
By contrast, in 2013, when Macau gambling revenue rose 19%, the share prices of Nasdaq-listed Melco Crown, as well as of Hong Kong-listed MGM China Holdings Ltd. and Galaxy, all more than doubled.
Melco Crown—which has as its co-chairmen Lawrence Ho, son of Macau gambling mogul Stanley Ho , and James Packer , son of the late Australian casino-and-media magnate Kerry Packer—said in a statement to the exchange late Friday that it wanted to leave the market because “appropriate opportunities to raise additional equity in Hong Kong have not arisen, and the volume of trading in the shares on the stock exchange remains very limited.”
 |
| The Crown Towers, operated by Melco Crown Entertainment, in Macau. |
By
Dual-listed casino operator Melco Crown Entertainment Ltd. on Friday applied to delist from the Hong Kong Stock Exchange just three years after listing its shares in the Chinese financial hub, citing limited fundraising opportunities and onerous compliance obligations and costs.
The gambling company, which operates casinos in Macau and a newly opened property in the Philippine capital of Manila, said it would maintain its primary listing of American depositary shares on the Nasdaq Stock Market, where Melco Crown has been listed since December 2006.
The news comes after a disastrous year for casino stocks caused by a sharp downturn in Macau, the world’s largest gambling market, as China’s corruption crackdown scared off high rollers. Shares of Macau’s six licensed casino operators fell an average of 40% in 2014 as Macau experienced its first recorded annual fall in gambling revenue—a 2.6% drop after a decade of booming growth.
Galaxy Entertainment Group Ltd. and Las Vegas Sands Corp. unit Sands China Ltd.—the only two casino stocks that are part of Hong Kong’s blue-chip Hang Seng Index—were two of the three worst-performing stocks on the index last year, weighing down the entire market. Galaxy sank 37% and Sands China declined 40%. Both listed Melco Crown entities, meanwhile, fell about 35% in 2014.
By contrast, in 2013, when Macau gambling revenue rose 19%, the share prices of Nasdaq-listed Melco Crown, as well as of Hong Kong-listed MGM China Holdings Ltd. and Galaxy, all more than doubled.
Melco Crown—which has as its co-chairmen Lawrence Ho, son of Macau gambling mogul Stanley Ho , and James Packer , son of the late Australian casino-and-media magnate Kerry Packer—said in a statement to the exchange late Friday that it wanted to leave the market because “appropriate opportunities to raise additional equity in Hong Kong have not arisen, and the volume of trading in the shares on the stock exchange remains very limited.”
It added that “maintaining the listing of the shares on the stock exchange requires additional ongoing regulatory compliance obligations and such requirements involve significant additional costs and administrative burden.” A spokeswoman for Melco Crown declined to comment beyond the announcement.
CLSA analyst Aaron Fischer said in an interview that the delisting plan made business sense. “I don’t think there is any point having an extra listing if that stock doesn’t trade due to limited investor demand, and therefore it’s not worth incurring the costs of the listing,” he said, adding that he didn’t believe there were any other reasons behind the company’s decision to leave the Hong Kong market.
According to data on exchange operator Hong Kong Exchanges & Clearing Ltd.’s website, the average daily trading volume of the Hong Kong-listed Melco Crown for the past three months was 34,000. On Nasdaq, Melco Crown’s average daily trading volume over the past 50 days was 3.88 million, according to the U.S. exchange’s website.
A spokeswoman for HKEx said that while she wouldn’t comment on individual companies’ business decisions, “we trust our market is attractive to issuers due to its liquidity and competitive in terms of compliance cost.” She said that the total funds raised from new issues and issues in Hong Kong’s secondary market reached 935.8 billion Hong Kong dollars (US$120.6 billion) in 2014, a record high. In 2014, Hong Kong also set a record with 96 main board listings, she said.
Melco Crown said in its statement that shareholders would have two options after the proposed delisting: continuing to hold the delisted shares or holding their interest in the form of the Nasdaq-listed ADS. The company said the timing of the proposed delisting, which would require the approval of shareholders and the Hong Kong Stock Exchange, was unclear.
Another link worth reading: http://www.wsj.com/articles/macau-gambling-revenue-drops-again-1406871798
Another link worth reading: http://www.wsj.com/articles/macau-gambling-revenue-drops-again-1406871798
Friday, January 16, 2015
Tuesday, January 6, 2015
Queensland State Elections
The Premier announced today that Queenslanders would go to the polls on Saturday January 31, 2015.
Produced by me.
Produced by me.
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