Imperial Pacific International Holdings Ltd, which has a casino licence for the Pacific island of Saipan, said on Tuesday it is selling its subsidiaries engaged in other business segments in order to focus on the development of its gaming business.
The Hong Kong-listed company – previously known as First Natural Foods Holdings Ltd – said it had agreed to sell the entire issued share capital in Supreme Wit Ltd – a firm principally engaged in the processing and trading of food products – to Paramount Century Investment Ltd for a total consideration of HKD2 million (US$257,927). The deal includes also the disposal of a subsidiary of Supreme Wit.
“Accordingly, the group shall cease to engage in the processing and trading of food products upon completion [of the deal],” said Imperial Pacific.
Imperial Pacific currently operates a “temporary casino” on Saipan, a Pacific island that forms part of the U.S. Commonwealth of the Northern Mariana Islands. The gaming venue had a total of 12 VIP gaming tables and 34 mass tables as of December 31, 2015.
A fortnight ago Imperial Pacific posted a net loss of HKD84.37 million for the full year 2015, compared to a loss of HKD1.56 billion in the prior year. The food processing and trading segment recorded a loss of HKD68.4 million in 2015.
“In view of the continual deteriorating performance of the food processing and trading segment and in order to prioritise the resources to develop the integrated resort business on the Island of Saipan, the board has decided to dispose of the remaining portion of the food processing and trading segment to reduce further loss,” the firm said in Tuesday’s filing.
The Hong Kong-listed firm has pledged to spend as much as US$7 billion on a casino resort on Saipan. In July the company started construction on two hotels, with a total of 254 rooms, and a casino. It said it expects the work to be “fully complete within 16 months”.
