Paradise Co Ltd, an operator in South Korea of foreigner-only casinos, is to acquire KRW5.25-billion (US$3.7-million) worth of its bonds, it said in a Tuesday filing to the Korea Exchange.
In August 2021, the casino firm issued bonds – via a private offering – in the amount of KRW200.00 billion, with a maturity date of August 12, 2026.
Paradise Co stated it would use its own funds for the redemption exercise. The relevant bonds will then be cancelled.
According to the company, from the KRW200.00 billion offered in 2021, nearly KRW12.48 billion has been converted into Paradise Co’s shares, while just above KRW158.52-billlion had already been cancelled.
After the latest acquisition, there will be a balance of KRW23.75-billion worth of bonds, according to the announcement.
The casino firm recorded group-wide net income at KRW104.3 billion for full-year 2024, up 30.1 percent year-on-year. The company’s sales reached approximately KRW1.07 trillion last year, up 7.8 percent from 2023.
The company has declared a year-end cash dividend of KRW150 per unit of common stock, to be paid on April 25. The total dividend payout under the exercise would be approximately KRW12.95 billion.
Paradise Co controls outright three casino venues: Paradise Walkerhill in Seoul; Paradise Jeju on Jeju island; and a property in the port city of Busan. It also has a venture with Japan’s Sega Sammy Holdings Inc for the Paradise City casino resort at Incheon, near South Korea’s main airport.
In March, Paradise Co said it would invest KRW575.0 billion to build a new hotel in eastern Seoul’s Jangchung neighbourhood. The aim is for the new hotel to open in 2028, stated the firm at the time.
The company also said it plans to increase its revenue “by more than 10 percent” annually through to 2027. That is part of its “plan to increase corporate value” for investors, according to a statement issued by the casino group.
