MACAU, S.A.R. - After failing to receive approval for its concession application for additional plots in the highly-touted Cotai Strip last week, Sands China has already filed an appeal to the Macau government for reconsideration.
The Macau unit of Las Vegas Sands (LVS) has sent an appeal to Chief Executive Fernando Chui Sai On asking the top Macau executive to overturn the decision to reject Sands' application for parcels 7 and 8 on the Cotai Strip. Sands announced the rejection in a statement to Hong Kong securities last December 2 that promptly sent its stocks tumbling 3% when trade resumed the following day.
The appeal is the first step that Sands in undertaking a reconsideration of its application. Under Macau's development processes, Sands China has 15 days following receipt of the notification to request for a review of its application to the Chief Executive. Sands has also 30 days to appeal the decision in court.
The rejection of Sands' application for more land may be due to Macau's other plans for Cotai. In an interview with the Macau Daily Times; Macau Lands, Public Works, and Transport Bureau Director Jaime Carion said that the government was looking at diversifying the offerings at the lucrative Cotai property and not just concentrating on making it another gambling haven.
According to Carion:
"We are looking at more diversification in the Cotai area rather than being exclusively for the casino industry. We want to promote more cultural activities, sightseeing, and recreation for families."
Sources: Macau Daily Times, MacauBusiness.com, and MarketWatch.com
Date: December 7, 2010
