Int’l Entertainment shares fluctuate amid uncertainty over Suncity deal

International Entertainment Corp., the company controlled by the family of Hong Kong billionaire Cheng Yu Tung, saw its shares fluctuate wildly in the past two days as its conclusion of the deal to acquire 70 per cent of economic interest in VIP gaming investor Suncity International Holdings Ltd remains uncertain.
The Hong Kong-listed International Entertainment Corp’s share price rose by 50.87 per cent to close at HK$2.61 per share yesterday, having fallen 19 per cent on Monday.
The staggering rise seen in International Entertainment Corp’s shares followed after the company released a filing post-trading hours on Monday that it was ‘not aware of any reasons’ for the decrease seen in its share price and the increase in its trading volume of the shares.
In the same filing, the company also noted that it had not reached any ‘definitive agreement’ with relation to the possible acquisition of 70 per cent of economic interest in Macau’s VIP gaming investor Suncity International Holdings Ltd.
International Entertainment announced on January 9 that it had entered into a term sheet with Suncity, saying that it had agreed to buy a 70 per cent stake in Sun City Gaming Promotion Co. At the time, International Entertainment noted in the filing that it had agreed to pay as much as HK$7.35 billion (US$947.8 million) for the deal.
The deal would allow International Entertainment to be entitled to all the net profit from gaming promotion operations by Sun City Gaming Promotions Co Ltd.
International Entertainment is controlled by the family of Hong Kong businessman Cheng Yu Tung, who has been a longtime partner of Stanley Ho Hung Sun, founder of Macau gaming concession SJM Holdings Ltd. Cheng’s family also controls Hong Kong property developer New World Development Co Ltd and jewellery chain Chow Tai Fook Jewellery Group Ltd.
When contacted by phone yesterday, Suncity International declined to update its progress of the possible acquisition of a stake in International Entertainment.
The exclusivity period of the intended acquisition expires today, a date that has been extended from June 30 following an announcement International Entertainment made on June 27.