Australia-listed Frontier Capital Group Ltd won on Thursday approval from its shareholders for the US$26-million acquisition of Hotel Stotsenberg and Casablanca Casino (pictured) in the Clark Freeport Zone, in the Philippines. The proposed deal is expected to close later this month.
Frontier Capital announced in November it had decided to buy Stotsenberg Leisure and Hotel Corp – the holding firm for the Clark casino hotel – for a total consideration of US$26 million. The consideration will be paid in the form of 154.05 million Frontier Capital shares, to be transferred in three tranches to the vendor.
The firm had said in a previous filing that an independent valuation conducted by Colliers International valued Stotsenberg land and buildings at AUD20.98 million (US$14.59 million).
Frontier Capital’s shares have been suspended following shareholders’ approval on Thursday; in order to change the description of the company’s activities following the acquisition of the casino hotel. The shares will remain suspended until the Australian Securities Exchange (ASX) approves the company’s re-compliance with ASX listing rules, the firm said in a separate filing on Thursday.
The Australia-based company had already announced its intention to expand the Casablanca Casino by raising the number of slot machines to 250 from 190 and increasing the number of gaming tables to 47 – excluding VIP and junket tables.
The firm forecasts profit to double at the Hotel Stotsenberg and Casablanca Casino after completion of the announced expansion plan.
Under the expansion plan, Frontier Capital is also planning to introduce live telephone betting – known in the industry as proxy betting – at the casino, according to a report from financial consultancy services firm Alpha Securities Pty Ltd.
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