Thursday, March 31, 2011

Las Vegas Sands' Macau unit, Sands China under probe by HK watchdog

KUALA LUMPUR: Las Vegas Sands Corp's Macau unit, Sands China Ltd is under probe by Securities and Futures Commission of Hong Kong over alleged regulatory breaches.

The company said on its website on Thursday, March 31 it had been requested to produce certain documents but it was not permitted to comment further.

Reuters reported that Sands China is one of six casino companies licenced to operate in the world's biggest gaming market.

Reuters said the Hong Kong-listed shares of the $19 billion gaming company were down 3.5 percent on Thursday. They had dropped about 9 percent in the two weeks following an announcement by parent LVS in early March that it was being scrutinised by U.S. anti-corruption agencies.

Former Sands China chief executive Steve Jacobs is suing Sands China in Nevada courts for breach of contract, and has accused the company of, among other things, seeking to use "improper leverage" against senior Macau government officials.

Analysts said the investigation by Hong Kong regulators was to be expected and had mostly already priced into the shares.

"If it is just Steve Jacobs again, I don't think it is a big issue. The SFC has to respond to the FBI and the SEC in the States, so if it is not really new news, I am not that worried about it," said Gabriel Chan, at Credit Suisse in Hong Kong.

Operator of The Venetian complex in Macau, Sands China competes in the former Portuguese colony with MGM Resorts International and Wynn Macau Ltd , a unit of Steve Wynn's, Wynn Resorts Ltd .

It has an about 20 percent share of Macau's lucrative gaming market, where revenue streams are at least four times higher than those in Las Vegas, second only to tycoon Stanley Ho's SJM Holdings Ltd's more than 30 percent.

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