I’ve already named James Packer my Rich Lister of 2012, so it’s probably no surprise he’s on my list of entrepreneurs to watch in 2013.
One key reason is that Packer will complete the sale of his stake in Consolidated Media and so will be cashed up to the tune of $1 billion. Does he pump it into Crown’s Sydney casino ambitions? Does he pump it into Crown shares and increase his stake? Does he look to expand into another industry? Does he buy a fat stake in a listed group as he has done with Treasury Wines this year?
Packer might do a combination of all these things, although his focus does appear to be on winning the right to build a second casino in Sydney at the Barangaroo project. Packer appears to consider this an empire-making statement and he is unlikely to be denied.
Where is the empire of Clive Palmer at? Building a new Titanic, creating a dinosaur park and getting involved in Australian politics are all sideshows when it comes to the job of making serious money. But his true cash cow suddenly seems to be under some pressure.
Palmer’s billion-dollar valuation has largely been based on royalties that will flow to him from the $US8 billion Sino Iron in Western Australia, which is being developed by Chinese conglomerate CITIC Pacific. CITIC has paid Palmer’s company Mineralogy more than $600 million for the right to mine three billion tonnes of iron ore at the project. As part of the deal, Palmer gets 30c for every tonne of iron ore mined.
It’s a lucrative deal, but the project has been plagued by delays, and CITIC and Palmer have recently been in court arguing about the terms of the royalty payments. Palmer, a self-described China expert, even went as far as describing CITIC as “running scared” before the company won an injunction against him.
This case is crucial to Palmer’s wealth and the well-known lover of litigation doesn’t want to get it wrong.
You won’t actually be able to watch David Teoh next year, because I can’t tell you what he looks like – the reclusive founder of telecommunications group TPG keeps well away from the cameras.
But Teoh is quietly heading for the billionaire’s club. The value of his stake in TPG has grown from $387 million to almost $730 million, a phenomenal rise given the competitiveness of the telco market and the relatively tepid state of the ASX.
Teoh and TPG are variously mentioned as a potential bidder Leighton Holding’s telco group Nextgen and even Michael Malone’s ISP iiNet, in which TPG has a major stake.
Teoh, the telco sector’s silent assassin, could be looking to make some serious waves next year.
POSTSCRIPT: This will be my final Rich Pickings column. I’ve thoroughly enjoyed examining the fortunes and lives of the rich and famous over the last five years and thank you for your comments, ideas and kind words.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
