Mar 28, 2017 Newsdesk Latest News, Rest of Asia, Top of the deck  
The largest shareholder of Cambodian casino firm NagaCorp Ltd, its chief executive Chen Lip Keong, is to gain full control of the company via the exercising of a set of conversion rights regarding a group of convertible bonds.
Once the process is complete, the stake of Mr Chen and related parties in NagaCorp’s entire issued share capital will increase from 39.98 percent to 61.13 percent, the Hong Kong-listed firm stated in a Tuesday filing.
NagaCorp operates NagaWorld (pictured), arguably Cambodia’s best-known casino resort among international commentators and the public. The property, authorised to serve only nationals of foreign countries, is the only legal casino within a 200-kilometre (124-mile) radius of the Southeast Asian nation’s capital, Phnom Penh.
The convertible bonds being exercised relate to a 2011 deal for the acquisition by NagaCorp of TSC Inc, a firm previously controlled by Mr Chen; the sale was only completed last year. TSC is the company holding the rights for the TSCLK Complex, across the road from NagaWorld. “The TSCLK Complex (also known as Naga2) is undergoing fit-out and is expected to be operational in 2017,” NagaCorp said in a February filing.
The conversion of the bonds is subject to the granting to Mr Chen of a waiver by the Hong Kong Securities and Futures Commission regarding the obligation to make a mandatory general offer for all the issued share of NagaCorp not already under his control, the filing said.
According to the Hong Kong Code on Takeovers and Mergers and Share Buy-backs, a mandatory offer is required when “any person holds not less than 30 percent, but not more than 50 percent, of the voting rights of a company and that person acquires additional voting rights and such acquisition has the effect of increasing that person’s holding of voting rights of the company by more than 2 percent from the lowest percentage holding of that person in the 12 month period ending on and inclusive of the date of the relevant acquisition”.
NagaCorp’s Monday filing stated that Mr Chen had indicated to the company that he did not intend for the moment to convert a different group of convertible bonds also under his control. The latter bonds are related to a different deal between Mr Chen and NagaCorp regarding the acquisition by the latter of Citi Walk Inc.
City Walk is the holding company for the NagaCity Walk project. The scheme, an underground shopping complex that had a soft opening in mid-August last year, will connect Naga2 to NagaWorld.
If Mr Chen were also to exercise the conversion rights of the NagaCity Walk convertible bonds, his stake in NagaCorp would increase to 69.83 percent of the firm’s entire issued capital.
May 25, 2023
May 09, 2023
Jun 01, 2023
May 31, 2023
Jun 01, 2023
SOFTSWISS, a software provider for online casinos and bookmakers, says the amount of bets participated in jackpots powered by its Jackpot Aggregator product “exceeded EUR959 million” (US$1.03...May 31, 2023
The iGaming segment in Asia “has grown rapidly” since...May 31, 2023
Showing slot machine players – via animations on the...May 31, 2023
Macau stocks in likelihood “have been punished too much...May 31, 2023
There are foreign companies still interested in investing...May 31, 2023
Thailand could pass the necessary enabling legislation for...May 30, 2023
China will remain a key market for Asian gaming...May 30, 2023
Alejandro Tengco (pictured in a file photo), chairman and...May 30, 2023
There are “plenty of reasons” for the global gaming...May 30, 2023
Gaming equipment provider International Game Technology Plc...May 30, 2023
The Global Gaming Expo (G2E) Asia 2023 Special Edition:...May 29, 2023
Austria-based gaming equipment maker and operator Novomatic...May 25, 2023
Sports betting and online casino operating platform...May 24, 2023
The business performance in Asia of gaming content and...May 18, 2023
The organisers of Global Gaming Expo (G2E) Asia 2023...May 17, 2023
Gaming content and equipment supplier Light & Wonder...May 16, 2023
Casino equipment maker Sega Sammy Creation Inc is to...May 09, 2023
Casino slot machine and digital gaming content provider...May 05, 2023
The Global Gaming Expo (G2E) Asia event in Singapore is the...May 04, 2023
An adviser to a Thailand parliamentary committee mulling...(Click here for more)
”[Macau casino] operators may want to remain prudent in not appearing to reward shareholders too early”
DS Kim
Head of Asia gaming and leisure research at JP Morgan Securities (Asia Pacific)