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Rumor : Asian Coast to Buy Macau Casino

Rumor has it that Asian Coast Development Ltd., the folks behind the Ho Tram Strip in Vietnam are in talks to buy "a casino" in Macau.

Which one? Well that would be the only one that isn't part of someone else who isn't selling's stuff - namely Macau Studio City of course.

Again, this is just rumor, but if ACDL does buy Macau Studio City, what happens to MPEL's contract to manage the casino? Will ACDL give MPEL the boot to work with their Ho Tram operational partners MGM?

I'd love to get a solid tip on this if someone over there has the goods.

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Comments & Discussion:

Considering the liquidity worries surrounding ACDL's Ho Tram Strip project (and Mike Aymong's less-than-stellar track record), I'd rank this as "low" in probability. Nor do I see the point in it for ACDL, because it'd have to farm the cash cow, er, casino out to an existing concessionaire AND because Southeast Asia -- the Ho Tram's target market -- is also a primary feeder market to Macao. So ACDL would be competing with itself. How Edmund Ho would react to a casino changing hands would be interesting in itself, as that scenario has yet to play out in Macao.

I have also heard the rumor, don't forget MGM Grand is partnering ACDL in Ho Tram. This would be an easy property take over for them on the Cotai Strip as they already have a concession in Macau!

I can't post anything solid, but this explains a couple things I heard/read/observed in my last trip. First off, Studio City is not just a dead project right now, but perhaps a diseased one. I talked to a mainlander a few months ago, and apparently pure fill land (which Studio City sits on) has bad Fung Shui, or so he said.

An off-handed comment was made to me about MGM-Macau may be preparing for a major "new management" change beyond the shakup of the past few months. Could it be the rumor is for something alot bigger?

Finaly, and less impactful thought, some of the deals for the newer places are a bit shakey with the economy. Perhaps Asian Coast is just acting as vulture to pick up, say, the St. Regis deal or the Arc at a bargin price. If they are cashed strap I think one of the SJM or Sands projects could break their way (Marina Bay anyone?)

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