China Star Entertainment Ltd, a services provider in the Macau casino market, said in a Wednesday filing that it had completed the sale of the Lan Kwai Fong casino hotel property (pictured) to local businessman Chan Meng Kam.
“The board is pleased to announce that the completion took place on January 3,” China Star reported in a filing to the Hong Kong Stock Exchange.
The firm had said in an October filing announcing the sale and purchase agreement that the deal involved a total consideration of HKD2 billion (US$256.2 million). China Star added at the time that Mr Chan had paid it HKD200 million in cash as a “non-refundable deposit”.
“The remaining balance of the sale price in the amount of HKD1,800 million has been fully paid in cash,” China Star said in its Wednesday filing.
The firm estimated in November the net gain on disposal of the venue would be HKD1.44 billion. Lan Kwai Fong was the only casino property in China Star’s asset portfolio.
The venue features 209 rooms, a casino, restaurants, shops and a spa. As of October, Casino Lan Kwai Fong operated a total of 84 gaming tables, targeting both the VIP and mass market segments. It also ran a total of 65 slot machines. Currently the property makes use of the gaming licence of SJM Holdings Ltd, according to information on the local gaming regulator’s website.
Purchaser Mr Chan, a veteran businessman and former Macau legislator, is chairman of privately-held Golden Dragon Co Ltd, which runs three casinos in the city, namely: Casino Golden Dragon and Casino Royal Dragon on Macau peninsula – both via the licence of SJM Holdings; and Casino Taipa Square on Taipa, making use of the casino licence of Melco Resorts and Entertainment Ltd. Casino Royal Dragon opened to the public on September 27.
Feb 16, 2018Due to the Chinese New Year holiday, the GGRAsia team will be off between February 16 and 19. We will be back on February 20. We wish all our readers a prosperous Year of the Dog!
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”A challenge to Macau's economic model could potentially emerge over the longer term should China revise existing criminal laws that prohibit most forms of gambling in the mainland... Even in such a scenario, Fitch would expect this to occur gradually”
Fitch Ratings Inc