Hong Kong casino dynasty advances US$12 billion succession plan
THE Lui family, one of Asia’s richest, has taken a step closer to working out succession for their roughly US$12 billion casino empire after the death of patriarch Lui Che Woo in November.
Francis Lui, 69, eldest son of the late Hong Kong tycoon, gained control of US$1.6 billion of shares that were previously held by his father and family foundations, according to exchange filings on Thursday (Feb 13). He is also chairman of the key family holding entity K Wah Group, according to the company’s website. A representative for K Wah Group did not immediately respond to a request for comment about the date of his appointment to that role.
The moves underscore how Francis Lui has solidified control of the business spanning casinos to property and hospitality, which he joined in 1979. His two brothers and sisters also hold management jobs in other parts of the empire. While the handover is an example of seemingly smooth succession planning, it also shines a spotlight on Hong Kong’s long-lived patriarchs and their ageing heirs.
“Many of the second generations are already in their sixties,” said Jeremy Cheng, adjunct assistant professor at the Chinese University of Hong Kong. They will have to prepare the following generation “to step up”, he added.
Francis Lui holds a Master of Science degree in structural engineering from the University of California, Berkeley. He became a board director about a decade after joining the family firm, working closely with his father, and has been considered a long-time successor for the group.
Paddy Lui, Francis Lui’s sister, is an executive director of Galaxy Entertainment Group, the family’s gambling operation, and real estate firm K Wah International.
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Alexander Lui, brother of Francis and Paddy Lui, is also a K Wah International director, managing properties in Hong Kong. Lawrence Lui, another brother, runs some of the group’s hotel business.
Eileen Lui, the youngest sister, is the human resources and administration director of Galaxy, according to the company website.
At least three of the third generation have been helping in the family business. Francis Lui’ daughter Joanna Lui is executive director of the Galaxy Entertainment Group Foundation, Paddy Lui’s son Eugene Tang has a management role in K Wah’s property business and Eileen Lui’s daughter Jessica Cheng works in philanthropy for the group.
The smooth transition within the Lui family stands in sharp contrast to the dramatic succession saga at the Chengs, another Hong Kong family that sought to hand responsibility to the younger generation much earlier.
Adrian Cheng, 45, abruptly stepped aside as chief executive officer of New World Development last year. Many wealthy clans in the city have seen internal fights, from Sun Hung Kai Properties’ Kwoks to the children of late tycoon Henry Fok.
K Wah Group is involved in businesses from casinos to property development and hospitality. Publicly traded companies Galaxy Entertainment Group and K Wah International are major assets, according to Bloomberg’s wealth index.
“In terms of the Lui family, the patriarch has done one thing that is really good, he plans ahead,” Prof Jeremy Cheng said of Lui Che Woo. “The division of the road has happened a long time ago, in 2012. That is pretty rare for a lot of the families here in Hong Kong or mainland China.” BLOOMBERG
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