Macau firm bags pachinko partner

2007-10-21 17:13 (New York)

Gambling business operator Macau Success (0487) plans to step into ventures outside the city after engaging Maruhan Corporation, a Japanese pachinko parlor operator, as a strategic partner in its casino business."We will look at business opportunities in Japan and elsewhere with Maruhan, but our focus will still be Macau," Sonny Yeung Hoi-sing, chairman and controlling shareholder of Macau Success, told The Standard.

Macau Success, operates the casino cruise ship MV Macau Success, which accounted for 90.7 percent of turnover in the six months to March. Kyoto-based Maruhan has agreed to buy an 18.2 percent stake in Macau Success as well as a direct 5 percent interest in the Ponte 16 casino- hotel project, jointly-developed with,and 51 percent-owned by, casino mogul Stanley Ho Hung-sun's Sociedade de Jogosde Macau. The total consideration amounted to HK$796.1 million in cash and loans. Maruhan will have 13 percent interest in Ponte 16."

The cash injection will create synergies for the two companies," Yeung said. "I especially like Maruhan's management ideals."Maruhan is equally confident of Macau Success's capability.

"Las Vegas people do not necessarily know the Chinese mentality well, but I trust Macau Success will make them feel happy," said Han Chang Woo, chairman and chief executive of Maruhan."

We are expanding our entertainment business in Southeast Asian countries such as Cambodia and the Philippines, and [Macau Success] is welcome to join."Macau Success will also consider investing in Zhuhai in ventures such as golf clubs and property together with Maruhan.

Maruhan is one of Japan's largest operators of pachinko parlors, or pin ball machine halls and also runs bowling alleys, golf driving ranges and cinemas.The tie-up with Macau Success is Maruhan's first investment in casino operations, and also marks the first entry by Japanese into Macau's gambling turf. "The relatively small investment is a trial towards further expansion in Macau," Han said.

Yeung said , Ponte 16, situated O Porto Interior (Inner Habour), would draw visitors, as it is surrounded by Wold Heritage sites.The casino is due for completion in December, while the 404-room hotel and shopping center will begin operations in mid-2008. Macau Success closed on Thursday at HK$1.10, down 1.79 percent.