A deal has been reached between Hong Kong-based Melco International Development Ltd, (HKG:0200), whose chairman is billionaire gaming mogul Lawrence Ho, and Shun Tak Holdings Limited (“The Group”) (HKSE 242) that allows for a discount of five percent of the purchase of ferry tickets from The Group, according to Macau Business Daily.
The deal between the two companies, that is in effect until December 31, 2018, caps the ferry ticket discounts Melco is able to receive from Shun Tak at HK$8 million (US$1 million) for 2016, with a cap of HK$41 million for 2017 and for the flowing year the cap is HK$45 million, according to a filing last week with the Hong Kong Stock Exchange (HKEX), reports the news agency.
The Group, founded by Stanley Ho, who is also the executive chairman of the company and father of Lawrence, operates the company that is active in shipping, property, hospitality, and investments businesses. The company’s shipping division, TurboJET, operates hydrofoil ferry services between Hong Kong, Macau, and Mainland China by way of one of its subsidies, Shun Tak-China Travel Shipping Investments Ltd. The latter was established in 1999 from the joint venture between Shun Tak Holdings Limited and China Travel International Investment Hong Kong Limited.
In the HKEX filing, Melco said, ‘The Company considers that the entering into of the Ferry Ticket Sales Framework Agreement and any related implementation agreements is beneficial to the Group,’ according to the news agency. The Group, in partnership with Crown Limited, established Melco Crown Entertainment Limited (Melco Crown) in 2004.
In other Ho-family news, SJM Holdings Limited (HKG:0880), controlled by the senior Ho, and Summit Ascent Holdings Ltd (HKG:0102), controlled by son Lawrence, may be looking to add the Crimean gaming zone to their substantial investment portfolios.