Bloomberg – Lui Che-woo became Asia’s second-richest person by setting up a casino company that within a decade became the world’s third-biggest by market value. The 84-year-old says he’s just hitting his stride.
“What can I do if I retire, watch the sun rise and set?” said the chairman of Galaxy Entertainment Group Ltd. (27) who first made his fortune in construction and also owns 13 hotels in the U.S., including seven Hiltons. “I want to do something meaningful. I don’t want to just sit there waiting to die.”
Lui, the richest person in Asia after Hong Kong property tycoon Li Ka-Shing, plans to expand his business empire beyond Macau and said he’s open to acquiring U.S. casinos. Meanwhile, Galaxy, which is spending about $10 billion to expand its gambling resort in the former Portuguese colony, may also invest HK$10 billion ($1.3 billion) in nearby Hengqin island, said Lui. He also plans to set up a charity to build schools in China.
Galaxy runs six out of 35 casinos in Macau, where casino revenue surged 19 percent to $45 billion last year, about seven times that of the Las Vegas Strip. After a more than sixfold increase in net income in the three years through 2012, the company seeks to repeat its success outside Macau, where the industry faces land and labor constraints in a city about half the size of Manhattan.
We don’t miss out on great opportunities,” Lui said in a Jan. 23 interview in his office with a commanding view of Hong Kong’s east Kowloon, which includes land reclaimed with rocks from his quarries. “We’d love to expand, especially after our resorts that combine casino, entertainment shows, arts and shopping have proved to be successful.”
Lui’s net worth has risen to $23 billion, anchored by his family’s 51 percent stake in Galaxy, according to the Bloomberg Billionaires Index. Galaxy’s share price more than doubled last year in Hong Kong trading, beating the benchmark Hang Seng Index’s 2.9 percent advance. The stock slipped 2.4 percent to close at HK$74.40 today.
Galaxy would consider investing at least $2.6 billion in Japan or Taiwan each if those markets open up, Lui’s eldest son Francis, who runs the company as deputy chairman, said in November.
Business leaders including Lawson Inc. (2651) Chief Executive Officer Takeshi Niinami are forming a group backing casinos in Japan, and Osaka Prefecture Governor Ichiro Matsui this month said their legalization is “just a matter of time.” Lawson is Japan’s second-biggest convenience-store chain.
