Yokohama IR tender likely to go to Genting or Melco
According to analysts, one of the contenders is now looking for a minority stake, leaving Genting Singapore and Melco Resorts to compete for Yokohama’s IR bid.
Japan.- It seems the competition to become Yokohama’s partner for its IR bid is coming down to two main contenders: Genting Singapore and Melco Resorts.
Galaxy Entertainment has already pulled out of the race. There remain two other companies interested, Sega Sammy, and Shotoku, but the former has said it is now seeking a minority stake in the development.
It said: “It would be better to form a partnership with a foreign company. In this way, from the perspective that we would be able to form a good partnership, we have shifted our stance to aim the participation as a minority.”
The company said it saw the law related to IR developments as a major concern as doubts remain over the duration of agreements.
As for Shotoku, analysts believe the company is too small to develop an Integrated Resort alone, leaving Genting Singapore and Melco Resorts as the only contenders capable of winning the IR bid.
Maybank Research has said it believes that Genting Singapore is well-positioned to win Yokohama’s IR bid.
According to analysts, Yokohama’s planned IR development could generate a gross gaming revenue (GGR) of nearly US$7bn a year and US$2.7bn in net profit.
However, the Yokohama IR development may depend on upcoming mayoral elections. Current mayor Fumiko Hayashi has not yet decided if she will run for a fourth period, and there are two anti-IR candidates seeking election.
