GGRAsia – Amax extends Vanuatu deal deadline

Amax extends Vanuatu deal deadline

Jun 03, 2014 Newsdesk Latest News, Top of the deck, World

Macau junket investor Amax International Holdings Ltd announced that it hopes to complete a deal to acquire a 60 percent stake in a casino in the Pacific island Republic of Vanuatu by the end of June. That’s a month later than the firm had initially anticipated.

In March, Amax, chaired by veteran Macau junket operator Ng Man Sun, said in a filing it had “entered into a non-legally binding letter of intent (LOI)” to buy a 60 percent stake in a firm called Forenzia Ltd.

In a statement to the Hong Kong Stock Exchange late on Monday, Amax said the due diligence review has not been completed and that the terms of the formal sale and purchase agreement have not been finalised.

On May 31, the parties entered into a supplemental letter of intent, under which which they have agreed to complete the deal by June 30 “or such other date as may be agreed”, the company said in the filing.

Amax had said the acquisition would allow it to diversify its income stream and expand its gaming business. The purchase price will be set after the company carries out due diligence procedures.

In the March filing, Amax said Forenzia held “an interactive 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”.

In addition to its pursuit of a deal on the Pacific island, located off the east coast of Australia, Amax also revealed in filings last year that it is interested in running a casino in the Turkish Republic of Northern Cyprus in the eastern Mediterranean.

In August 2013, auditors for Amax expressed “significant doubt about the group’s ability to continue as a going concern” after the firm recorded losses in its fiscal year ending March 31, 2013.