Hong Kong-based conglomerate Chow Tai Fook Enterprises (CTFE) has submitted a formal plan to operate the unfinished $3.5b Baha Mar integrated resort in the Bahamas.
Last month, CTFE confirmed that it was in talks to buy Baha Mar from its principal creditor, the Export-Import Bank of China (EXIM). On Monday, Bahamian government representatives confirmed receiving CTFE’s formal proposal last week and said the government was in the process of reviewing it.
The Bahamas Tribune quoted Tourism Minister Obie Wilchcombe saying CTFE’s proposal included a shortlist of casino firms that CTFE is considering for the job of running the property’s gaming operations. Wilchcombe said the government was now in the process of performing due diligence on CTFE’s suggested operators.
Wilchcombe declined to offer specifics on what names CTFE had submitted, but said CTFE was “going to pretty much follow what they’ve done in other jurisdictions where they have major casino operators from veterans in the industry.” Wilchcombe said the government was “looking at all the components, we have to take a look at what they do now.”
CTFE is a broadly diversified conglomerate with fingers in a lot of pies, including jewelry, property development, transportation and hotel management. It is also developing a casino in Vietnam in partnership with Macau junket operator Suncity Group and another in Australia as part of a consortium that includes The Star Entertainment Group. CTFE has also expressed interest in putting down casino roots in South Korea.
CTFE holds a 10% stake in the parent company of Macau casino operator SJM Holdings. SJM founder Stanley Ho’s alleged links to Hong Kong’s triads led at least one observer to publicly claim CTFE was unsuitable to operate Baha Mar but CTFE has denounced such claims, saying it is strictly an investor in SJM and that there would be “no affiliation” between Baha Mar and SJM.
With SJM out of the running, and considering the high level of interest in Baha Mar’s fate and CTFE’s desire to avoid further public besmirching of its good name, Australia’s The Star Entertainment Group would seem the safe choice to run Baha Mar’s gaming operations, and it dovetails nicely with Wilchcombe’s comments about CTFE relying on existing relationships in crafting its shortlist. But for the moment, only CTFE knows where its heart truly lies.
