The acquisition of Hotel Stotsenberg and Casablanca Casino (pictured) in the Clark Freeport Zone, in the Philippines, is expected to be completed this month, said a senior executive of Australia-listed Frontier Capital Group Ltd.
The firm announced in November it had decided to buy Stotsenberg Leisure and Hotel Corp – the holding firm for the Clark casino hotel – for a total consideration of US$26 million.
“The company is looking to complete the acquisition of Stotsenberg in late January,” Ram Navaratnam, one of the directors of Frontier Capital Group, said in a release on Wednesday.
“We are confident that our targets will be met and that Stotsenberg with the Casablanca Casino will set Frontier Capital Group up as an emerging player in the Southeast Asia gaming industry,” he added.
The firm’s shareholders will consider the acquisition of Stotsenberg Leisure and Hotel at a general meeting to be held on January 21. Frontier Capital Group is also proposing to rename itself Fortune Crown Group Ltd.
The Stotsenberg Hotel and Casablanca Casino has 239 hotel rooms, 190 slot machines, 36 gaming tables and two VIP rooms, according to a prospectus lodged with the Australian Securities Exchange on January 7. The property is located fewer than two kilometres (1.2 miles) from Clark International Airport.
In Wednesday’s release, Frontier Capital Group said an independent valuation conducted by Colliers International valued Stotsenberg land and buildings at AUD20.98 million (US$14.59 million). Colliers International provides commercial real estate consulting services, including valuation and appraisal services.
Frontier Capital Group wants to introduce a new growth strategy for the Casablanca Casino this year. It has said it plans to increase the number of gaming tables to 47, while the number of slot machines would increase to 250.
The firm has also said the expansion plan would be supported by the expected growth in the number of visitors following the approved expansion of the Clark International Airport
The company has additionally stated that it expects profit at the Philippines property to double by 2018 after completion of the expansion plan.
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