Lawrence Ho is committed to tapping the northern Chinese gambling market through Russia.
Two of Ho’s Hong Kong-listed companies, Melco International and Summit Ascent, have bought 51 per cent of Oriental Regent, which owns a casino under construction in Primorye on Russia’s Pacific coast.
The companies paid around US$65m for their stake in the $130m casino that will have 800 slot machines, 25 VIP tables and 40 mass-market tables when it opens next September.
Melco International also is one of four companies short-listed for a major casino resort in Primorye’s capital of Vladivostock. In making the investment, Ho said Primorye’s location allows it to serve three north-eastern Chinese provinces.
Melco International will own five per cent of Oriental Regent and Summit Ascent will own 46 per cent. Melco also owns more than a third of Melco Crown, where Ho is CEO.
Other owners are Russian businessman Oleg Drozdov at 30 per cent and Taiwan-listed Firich Enterprises at 19 per cent. Oriental Regent is also listed in Hong Kong.
There could be a glitch in the deal, however. The shares were purchased from a Russian businessman who is going through a divorce and whose wife is claiming half ownership of his shares. However, Melco says there is no legal impediment to its purchase.
