One of the leading casino developers in Asia, SJM Holdings is currently undergoing a period which brings with itself major changes in the management structure of the company. This, in turn, has caused the frowns of experts in the field who claim that the board changes following Stanley Ho’s retirement have not been the best decision in the light of the future launch of Grand Lisboa Palace.
One of the most recognizable names in the international casino industry will soon no longer be a part of the field, as Stanley Ho was announced to step down from his casino dynasty. The Hong Kong billionaire who has dedicated his life to the improvement of the gambling field is going to retire at the age of 96 and put an end to his influential career in the casino world. His decision will become reality on 12th June, after SJM’s annual general meeting has officially ended. According to the announcement made following the news of the retirement, Mr. Ho’s daughter Daisy Ho is going to become the new leading figure in SJM.
There will also be more changes in the management, as Angela Leong who is also known as the fourth wife of Mr. Ho is going to receive the Co-Chairwoman and Executive Director post. In the meantime, Timothy Fok, who is the son of Henry Fok, one of Mr. Ho’s former business partners will also be appointed to a leading position after the retirement. Experts in the field stated that this decision has not been the best for the future development of the company, as new additions to the team would have brought a breath of fresh air to the casino company.
Negative Impact on the Future Operation
According to the statement issued by analysts DS Kim at JP Morgan Securities, the new structure of the company featuring many people on leading positions with relatively equal power could cause friction in the future when it comes to decision making. They stated that as it seems at the moment, there is not one figure having control over the management.
It could be recalled that rival casino developer Galaxy Entertainment Group recently attracted a leading specialist in the field to their staff. Ted Chan is the former Chief Operating Officer of Melco Resorts. According to the analysts, Chan’s introduction to SJM could have driven the operator ahead in the casino industry. Grand Lisboa Palace is the project which is currently under construction in Cotai.
It is going to cost as much as HK$36 billion (US$4.6 billion) to its developers and due to various reasons, there have been several delays in its launch date so far. The initial plan for construction stated that the location should be ready to welcome its first guests in 2018, but at this point, the more plausible launch date would be in late 2019. As stated by some experts, a better management team at SJM could have helped speed up the process.
