GGRAsia – Amax extends Vanuatu deal deadline for third time

Amax extends Vanuatu deal deadline for third time

Aug 01, 2014 Newsdesk Latest News, Top of the deck, World

Hong Kong-listed gaming investor Amax International Holdings Ltd on Thursday said it is extending for the third time the deadline to complete a deal to acquire a 60-percent stake in a gaming operator in the Pacific island Republic of Vanuatu. The new deadline is by the end of August, three months later than the timeframe the firm had initially anticipated.

The parties agreed to extend the cut-off date to August 31 “or such other date as may be agreed,” Amax stated in a filing to the Hong Kong Stock Exchange.

It said the extension is needed “to complete the due diligence review and finalise the terms of the formal sale and purchase agreement”.

In March, Amax, chaired by veteran Macau junket operator Ng Man Sun, announced it had entered into a non-legally binding letter of intent to buy the 60-percent stake in Forenzia Enterprises Ltd for approximately HKD55 million (US$7.1 million) by issuing 37 million consideration shares of the company.

According to Amax, Forenzia holds a gaming licence from the Ministry of Finance and Economic Development of the Republic of Vanuatu “for a term of 15 years to conduct interactive gaming business”.

Amax stated in its latest annual report that its management “is optimistic about the gaming business prospects in Vanuatu based on its stable political environment, high accessibility from major Asian cities, low tax, as well as governmental support for the development of its gaming sector”.

In June, Amax said it was extending for a fourth time the deadline on talks to acquire a controlling stake in a proposed casino operation in Northern Cyprus.