The firm controlling Macau’s Grand Emperor Hotel, a venue that formerly had a satellite casino, says it has arranged the sale of 79 kilos (174.2 pounds) of gold “bricks” that for “over two decades” have paved the entrance to the property (pictured in a file photo), while protected by secure glazing.
Emperor International Entertainment Hotel Ltd said in a Wednesday filing to the Hong Kong Stock Exchange, that the consideration for the deal was HKD99.7 million (circa US$12.8 million). The company said it expected to “recognise a gain of approximately HKD90.2 million” from the exercise.
The casino at the Grand Emperor Hotel, in Macau’s central business district – formerly under SJM Holdings Ltd’s gaming licence – stopped operating on October 30, as part of city-wide regulatory changes that saw the end of the satellite-casino sector .
The hotel’s promoter stated regarding the sale of the gold bricks: “Following the cessation of its gaming operation, the group has been actively planning for other entertainment and amusement facilities to enhance its overall hospitality experience and broaden the revenue base.”
It added: “Given that the relevant area is … to undergo renovation and redevelopment, the precious metal that was originally part of the hotel’s interior design and outfits is no longer relevant to the theme of the hotel.”
The gold had nonetheless served its purpose of creating a “sumptuous and resplendent atmosphere for brand building in the casino,” as it had “covered the major passageway area of the floor of the hotel lobby …. for over two decades, and had attracted high foot traffic”.
The purchaser of the gold is Heraeus Metals Hong Kong Ltd, ultimately controlled by Germany’s Heraeus Holding GmbH.
The vendor is Right Achieve Ltd, a British Virgin Islands firm that is indirectly non-wholly owned by Emperor International Entertainment Hotel.
The latter said in its filing: “The net proceeds will strengthen the group’s financial position and enable it to invest should suitable investment opportunities arise.”
The firm said the disposal was “in light of the prevailing market conditions and the market price of the precious metal currently” being “at a high level”. It added: “The directors are of the view that the disposal represents a good opportunity for the group.”
Gold reached a record high on January 29 of just over US$5,600 per troy ounce (31.1035 grammes) in both the futures and over-the-counter (OTC) markets, before falling back in following days.
At the close of Wednesday trading in London, in the United Kingdom, the price was US$4,985.1 per troy ounce, down 1.3 percent on the US$5,051.75 recorded at the opening. That is according to data from the London Bullion Market Association. London is the main centre for OTC spot trading for gold.
Emperor International Entertainment Hotel had reported in November a loss attributable to its owners of nearly HKD57.4 million for the six months to September 30. It noted gaming revenue had declined in the run up to the casino’s closure.
