Macau (MNA) – Local junket operator Suncity Group Holdings Limited announced this Wednesday that it has completed the acquisition of the entire equity interest in Star Admiral Limited, an Integrated Resort (IR) developer headquartered in Vietnam.
In a Hong Kong Stock Exchange release signed by group chairman Alvin Chau Cheok Wa, the group announced that the deal was completed on August 28 and that Star Admiral is now a wholly-owned subsidiary of Suncity.
Suncity performed the deal through its subsidiary Goal Summit Limited, which purchased the entire issued share capital, associated obligations, liabilities and debts of Star Admiral Limited, which holds a 34% stake in Hoi An South Development Limited Project Company.
Hoi An South is the owner of an Integrated Resort project being developed in Hoi An South, Quang Nam Province, Vietnam, named HOIANA.
The whole development of HOIANA is expected to comprise seven phases to be developed over a span of 13 years on a site of approximately 985.5 hectares, with the first phase to be completed in the second quarter of 2019.
The property’s casino is to include 140 gaming tables and 1,000 slot machines, with Suncity claiming some additional 1,000 slot machines could be added in the next six phases of development.
The acquisition agreement was settled in early November 2017 for a total consideration of HK$600 million (US$76.77 million) and the deal involves the issuance of a promissory note and convertible bonds by the company in the principal amounts of HK$303 million and HK$297 million, respectively.
The junket operator has recently reported a loss of RMB1.65 billion (US$242.1 million/MOP1.95 billion) for the six months ended June 30, 2018, attributed ‘mainly to the increase in loss of approximately RMB944.1 million’ due to change of value in convertible bonds.