Macau family feud hits share sale

Mr Ho had a monopoly on gambling in Macau until 2002

The casino company of Macau mogul Stanley Ho has delayed its Hong Kong stock market listing after a court challenge by an estranged sister.

Mr Ho's firm said on Wednesday it would move its flotation to July 16 from July 10 after Winnie Ho questioned the legality of the share sale.

However, Hong Kong's High Court later ruled against her last-minute attempt to block the deal.

Ms Ho has filed more than 30 lawsuits against her brother in recent years.

Her spokeswoman said shortly before the ruling that she would appeal if it did not go in her favour.

We will no longer allow these unfounded accusations to affect the prestige of our company after it's listed SJM's chief executive Ambrose So

Mr Ho's Sociedade de Jogos de Macau (SJM) released a statement before the court's decision announcing the delay of the trading debut and saying successful share applicants could choose to get their money back.

Ms Ho has a 7.3% stake in SJM, while Mr Ho directly or indirectly controls 30%, according to the firm's listing prospectus.

Concerns

SJM's chief executive Ambrose So said he hoped the court ruling would allay investors' concerns about the listing.

"Of course we can't speculate on what Winnie Ho may decide to do to continue her campaign," Mr So said.

"But we will no longer allow these unfounded accusations to affect the prestige of our company after it's listed and we reserve the right to take action against the accusers."

Ms Ho had said that the listing was against the longstanding policy of the Hong Kong government not to promote gambling.

Family empire

SJM, which had a monopoly on gambling in the former Portuguese territory until 2002, is losing market share to US gaming giants Las Vegas Sands, MGM Mirage and Wynn Resorts.

Analysts say a successful share listing would improve SJM's ability to compete against its rivals. However, the flotation has been delayed and scaled back amid a weak stock market and queries from Hong Kong's stock market regulator about the shareholding structure of SJM's parent firm, STDM - also controlled by Mr Ho, who turns 87 this year.

The listing has shed a rare ray of light on the workings of a secretive Chinese family empire, publicly revealing STDM's 44 shareholders for the first time.

They include Mr Ho's third and fourth wives, three sisters in addition to Winnie Ho, and one of his children.

SJM is taking steps to reassure investors that preferential deals are a thing of the past by requiring its parent firm to tender services at the best available market price.

Last year, Edmund Ho, Macau's political leader and no relation of Stanley Ho, dismissed claims that he had investments in STDM.