Control of Macau’s largest junket operator has passed into the hands of one of Asia’s wealthiest men.
Sun City Gaming Promotion Co., which runs 17 VIP clubs with about 280 table games that last year turned over an estimated HK$1.68 trillion in rolling chips, has sold 70% of the business to Hong Kong-listed International Entertainment, which is controlled by the family of Cheng Yu Tung. Mr Cheng’s net worth is estimated at US$21.1 billion, according to the Bloomberg Billionaires Index.
Bloomberg was first to report on the sale.
International Entertainment said in a statement that the acquisition will enable it to “broaden its range of investments” and said it may sell equity or issue debt to finance the acquisition.
The statement said Sun City’s consolidated 2013 earnings before interest, taxes, depreciation and amortization amounted to at least HK$1.5 billion. Founded in 2007 by businessman Chau Cheok Wa, the company also runs VIP clubs in South Korea and the Philippines.
“Buying into an existing junket operator is probably the easiest way to participate in Macau’s casino boom,” said Grant Govertsen, an analyst at Union Gaming Group. “Macau’s government is unlikely to give out more casino licenses, but the city’s tremendous growth in casino business is largely driven by the mainland VIPs brought by the junkets.”
Mr Cheng has been a minority shareholder for years in Stanley Ho’s Sociedade de Turismo e Diversoes de Macau, having bought a 10% stake in 1982.
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