AAEC letter no impact on gov’t decision: JP Morgan

Brokerage JP Morgan Securities (Asia Pacific) has stated that the recent letter sent by Asian American Entertainment Corporation (AAEC) to the city’s gaming commission for casino licenses is not related to the government’s deliberations.

Last week, the AAEC wrote to the commission casting doubt on Sands China’s financial capacity to bid for a concession amid the ongoing legal battle against its subsidiary, Venetian Macao SA, as cited in the letter seen by TDM. 

Led by Taiwanese businessman Marshall Hao, the AAEC has been seeking compensation from the parent company of Sands China, Las Vegas Sands, of at least USD12 billion over claims it breached its contract in the 2001 gaming tender process.  

The Court of First Instance has ruled in favor of LVS.

“We cannot speculate on the outcome of the lawsuit/appeal, but we reiterate that this [news] has nothing to do with what the government thinks/says,” wrote analyst DS Kim of the brokerage.

“This letter was sent by Asian American, who, as per the Macau court, has acted in bad faith and distorted the facts.”

For the analysts, the group is “not worried about these headlines.”

The Asian American has sent the letter amid the ongoing process for the fresh 10-year concession which the commission is currently reviewing. 

Last month, all seven bidders submitted proposals in medium to large cardboard boxes on pallets and labelled as original documents, along with copies.

If granted a license, casino operators must maintain MOP5 billion in cash during the 10-year license period.

The Times sought comment from Sands China and LVS but they declined to comment at this juncture.

The Gaming Inspection and Co-ordination Bureau (DICJ) and the Office of the Secretary for Economy and Finance did not reply to the Times’ inquiries made last week.