GGRAsia – Fame Select ups Suncity holdco stake by bond conversion

Fame Select ups Suncity holdco stake by bond conversion

Nov 09, 2018 Newsdesk Latest News, Macau, Rest of Asia, Top of the deck

Macau gambling junket investor Alvin Chau Cheok Wa’s listed vehicle for certain investments, Suncity Group Holdings Ltd, says its majority shareholder, Fame Select Ltd, is increasing its stake in the company.

Mr Chau is the chairman and an executive director of Suncity Group Holdings, and he owns 50 percent of Fame Select.

On Thursday Suncity Group Holdings told the Hong Kong Stock Exchange that Fame Select had informed the company it would exercise a right to activate convertible bonds worth HK$168 million (US$21.54 million) into shares.

Fame Select has the authority to convert into shares up to HK$3 million worth of convertible bonds it holds in the listed entity

Suncity Group Holdings said Fame Select had informed the company of its intention the same day.

The conversion price of is HK$0.26 per conversion share, so over 646.15 million conversion shares will issued to Fame Select.

Suncity Group Holdings said it was expecting to issue the conversion shares yesterday or soon after.

The courted firm said the issue would increase the Fame Select stake in the company to 74.87 percent from 72.17 percent.

A separate, privately-held entity called Suncity Group is said by analysts to be one of the biggest-single investors in junket room operations in Macau. The Hong Kong-listed business Suncity Group Holdings does not encompass the profit streams of junket operations for privately-held Suncity Group.

In early October the holdco said it had a deal to set up and run a casino in a resort in the Cambodian province of Sihanoukville.