(1) ORIX President Inoue takes the lead in the IR business
The headquarters with CFO Irie Working Force “KIX Concession” team
In March of 2019, ORIX formed a partnership with the global IR company, “MGM Resorts International” in the United States, and made an effort to enter the Osaka IR business. < MGM will manage the casino side, and the management of the IR side will be divided across the corporate community including ORIX>
[Reference article: To enter the ORIX IR first domestic, tie up with US MGM in Osaka (20190322 Nikkei) https://www.nikkei.com/article/DGXMZO42765770S9A320C1AM1000/]
According to the financial industry officials mentioned above, Mr. Miyauchi was the mastermind behind the aforementioned “KIX Concession,” but in the case of the IR business, Mr. Inoue took charge. Mr. Inoue is focusing on IR because, “The IR construction site is planned to be located in the middle of Kobe, Itami, and KIX, which are operated collectively by Kansai Airport. This positioning will lead to more profit for ORIX.”
It is said that the team that took charge of Kansai Airport under Mr. Irie is working as the main working force.
(2) The current mood of the “Kansai business world”…
While some companies are interested in the IR business, (mainly in railway companies such as “Kintetsu) much of the Kansai business community seem to find it difficult to raise their hand due to the potential risk in hurting their reputation. Furthermore, some companies in the Kansai business community are keeping a distance to the IR business itself stating that “while the airport is public infrastructure, IR involves gambling so it could be more problematic …”. It is said that the “Kansai business world” is not that positive as a whole.
The megabank officials mentioned above explain the current situation as follows:
“Because ORIX is a company that does not care about a decline in their reputation because of their participation into the gambling business, they seem to be excited and are going forward with the business. Because of this, much of the Kansai business community is happy to see ORIX openly take the lead. However, in reality, they hoped that a more controllable and less-volatile company such as major real estate company such as “Mitsui Real Estate” or a general trading company such as “Sumitomo Corp” would raise their hands and participate in the IR business. However, the chances of Mitsui Real Estate to participate in the gambling business is extremely low.
According to the same financial industry official above, there is also information that SMBC is trying to bring in Sands from Las Vegas. However, they are most likely not going to be able to compete with the aggressively moving ORIX.
While the ORIX side is aware that there are negative campaigns and disinformation about itself over the Osaka IR, they feel that ultimately “similar to the KIX situation, there is not even a slight consideration of stepping down.” Instead, ORIX thinks that because of their work with a foreign company regarding KIX, they now have the know-how with working with them. “According to an ORIX executive,” Americans are probably much fairer than the French’s colonial style management “(laughs) “(Same as before)