Gaming magnate claims he was left with almost nothing after re-allocation

Macao billionaire Stanley Ho filed suit in the High Court of Hong Kong against two of his wives, five of his children and a banker Thursday, despite his statement on TV Wednesday that a family fracas had been resolved.

The writ, which alleges that his third wife Ina Chan, second wife Lucina Laam and her daughters Daisy, Pansy, Maisy, Josie and her son Lawrence, illegally procured shares in Lanceford, the company which controls a large part of his wealth.

Stanley Ho's long-time lieutenant, Patrick Huen Wing-ming, who is a banker and a director of Lanceford, was also named in the writ.

Stanley Ho said on Hong Kong's TVB network Wednesday he had agreed to transfer his 31.7 percent stake in Sociedade de Turismo e Diversoes de Macau SA (STDM) to five of his children and his third wife Chan, and that there would be no litigation.

Though, he appeared to be reading from a script on a large white board in front of him.

Stanley Ho's lawyer Gordan Oldham told reporters Thursday the 89-year-old had been pressured into delivering the prepared speech and had been cheated out of his wealth without his knowledge.

Lanceford is the corporate entity in which Ho formerly held a 100-percent stake and where the majority of his wealth resides. The company made a massive share issue on Dec 27, 2010, giving his third wife Chan a 50.55-percent stake, leaving the remainder to Ranillo Investments, another company jointly owned by the five children of Stanley Ho's second wife Laam.

Ho, Hong Kong's 13th richest man at HK$24.1 billion according to Forbes in January 2010, alleges the new share issue diluted his stake to less than 1 percent, with his third wife Chan, as well as his second wife Laam's five children, raising their stake from 0 to 99.98 percent.

The writ alleges the four directors of the company, Laam, Daisy Ho, Pansy Ho and Huen, breached their fiduciary duties by making an improper or illegal share issue which gave them de facto control of the company.

Stanley Ho is seeking to block any disposal or deal involving the new shares along with damages.

The children of Clementina Leitao, Ho's first wife who died in 2004, were left out in the division of assets, Angela Ho, Stanley Ho's daughter with Leitao, stated in a letter to the media, saying she can't believe her family had been "left with nothing at all".

Lawyer Oldham said Stanley Ho's desire was to share his estate equally but that the share allotment had eliminated this possibility, adding that the father of 17 children still held hope the issue could be resolved and his assets distributed on his terms.

STDM owns 56 percent of Sociedade de Jogos de Macau, which indirectly operates 20 out of 33 casinos in Macao where gaming revenues were four times that of the Las Vegas Strip in 2010.

China Daily

(HK Edition 01/28/2011 page1)