According to a filing by Pansy Ho’s Shun Tak Holdings, the businesswoman has entered into an agreement with the Henry Fok Foundation that will see the creation of an alliance to oversee the future of SMH Holdings in Macau, as well as of its controlling shareholder, the privately-owned Sociedade de Turismo e Diversoes de Macau, SA (STDM). Ho is the daughter of Stanley Ho, a casino tycoon that founded both STDM and Hong Kong-listed SJM Holdings.
Between Ho and the foundation, they control a combined 53.012% of STDM’s issued shares. The Henry Fok Foundation owns 26.576% and Ho’s Shun Tak organization controls 15.781%. Other interests held by Ho control the remainder.
In turn, STDM controls 54.11% of SJM as stated in SJM’s 2018 interim annual report.
What wasn’t clear from the filing yesterday is how the alliance will operate. No information was given regarding whether or not the alliance will look to replace management personnel at either SJM or STDM, but did state that it would introduce a proposal to vote on the board of an SJM subsidiary that holds the group’s casino gaming license in Macau.
The filing said, in part, that “the parties have agreed to use their best efforts to exercise their respective powers and rights as shareholders, directors, corporate directors, [including] “a common proposal for the election of STDM board members when it is time to vote on their election (the next such occasion being on or before March 31, 2019) and to jointly agree the appointment of the chairman as well as the managing director of STDM.”
In addition, Ho and the foundation have “committed to procure the effective and good governance of SJM [Holdings] by, inter alia, exercising their rights in relation to STDM to support the nomination for election of such person(s) as director(s) of SJM as they may approve from time to time, the election of the chairman and co-chairman of SJM [Holdings] and the promotion of good corporate governance practices by SJM [Holdings] including with respect to its management function and structure.”
The Henry Fok Foundation is funded by assets that were previously owned by one of Stanley Ho’s original business partners, Henry Fok Ying Tung. That partnership dates back to 1962.