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The
Business Times, 20 Apr 04
MAS seen taking more time with casino's IPO
bid
By LOH HUI YIN
Lasseters' managers confident it'll pass the money laundering test
THE Monetary Authority of Singapore (MAS), which last year rejected
Cambodian casino operator NagaCorp's listing because of money laundering
concerns, is leaving nothing to chance with another casino's application
to list here. It is going through Australian casino operator Lasseters
International Holdings's prospectus with a fine-tooth comb and is
likely to extend the review period before the prospectus is registered.
However, the team of professionals working on Lasseters' listing is
quietly confident that they have addressed the MAS' key concern -
safeguards to prevent money laundering. The MAS' view that NagaCorp
did not have adequate controls on money laundering caused the Cambodian
casino operator's listing to be still-born.
Based on the lodgement of Lasseters' prospectus on the MAS Opera website
on March 31, the usual 21-day review period ends on Wednesday during
which the public is free to comment on Lasseters' prospectus. Under
the Securities and Futures Act, the MAS has up to 28 days to decide
whether to register the prospectus. The MAS must register a prospectus
before the company can launch its sale of shares to the public.
Business Times understands that the longer review period for Lasseters
would give more time for the MAS, which has also been kept busy with
a deluge of initial public offer applications, to scrutinise the prospectus.
'There do not appear to be major issues. The only requirement so far
has been for certain accounting information to be brought up to speed,'
said an adviser in the Lasseters IPO.
In the case of NagaCorp, MAS first blocked its prospectus on Sept
8 last year over its concerns about inadequate controls on money laundering.
NagaCorp then appealed and made more submissions to the MAS. On Oct
21, the MAS said that after having considered NagaCorp's submissions,
it was 'of the opinion that its earlier reservations have still not
been adequately addressed. MAS has, therefore, decided to refuse registration
of NagaCorp's prospectus.'
Like NagaCorp, Lasseters is owned by Malaysians - the Tan brothers.
Lasseters aims to list on Sesdaq through an offer of 45 million new
shares. It owns, among various assets, Lasseters Hotel Casino, which
is located in Australia's Alice Springs in the Northern Territory
state. Yap Wai Ming, director of Stamford Law, the Singapore law firm
advising Lasseters, said: 'All the directors and key employees have
been approved at the state and federal levels in Australia which has
stringent regulations on gaming. 'The proposed independent directors
- there will be three of them - have to go through a probity clearance.'
Besides this, Lasseters also comes under the jurisdiction of Australia,
which is a member of the 33-member Financial Action Task Force. It
is an inter-government body that sets standards and develops and promotes
policies to combat money laundering and terrorist financing. Singapore
is a member of the task force. Cambodia, under which NagaCorp is governed,
is not a member of the task force. 'It helps that Australia is a member
of the task force,' pointed out Mr Yap.
Lasseters' IPO has long been in the making. It first awarded the mandate
to its team of professionals in late 2002. Its first submission was
made to the Singapore Exchange in August 2003 - around the time when
NagaCorp's initial rejection occurred. Extensive discussions continued
between Lasseters, the SGX and MAS in the wake of NagaCorp's failure.
'We have been living in the shadow of NagaCorp,' observed Mr Yap.
Lasseters also had to shelve plans to include its Internet gaming
operations in the listed entity, as the Australian government is reviewing
the Interactive Gaming Act. Lasseters eventually re-submitted its
application to the SGX on March 1 this year. This was followed by
the lodgement of prospectus on the MAS Opera website on March 31.
Because of more extensive due diligence, the time taken for the Lasseters
IPO was double that of the normal six months for a local company's
IPO. Reflecting on the process, Mr Yap said he has become more knowledgeable
about gaming laws. 'With the current talk about opening a casino on
Sentosa, it will be good to explore some of these regulations before
we open one,' he said. |
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