A Hong Kong-listed “e-logistics” and mining company called CST Group Ltd said on Tuesday it had an agreement to acquire a 10-percent equity interest in – and a shareholder’s loan due from – an entity that owns The 13 Hotel (pictured) in Macau. The exercise involves a cash consideration of HKD150 million (US$19.1 million).
The hotel property is on the border between Coloane and the casino district of Cotai in Macau. The venue, offering 200 duplex suites and a number of restaurants, had a partial opening on August 31, 2018. Its promoter South Shore Holdings Ltd, aspires to have a casino at the property.
Earlier on Tuesday, South Shore said in one of its own filings to the Hong Kong bourse that it had an agreement that could lead to the disposal of a 40-percent interest in a subsidiary that owns The 13, for a total consideration of “up to HKD750 million”.
That filing did not identify the company’s subsidiary or the prospective investors in the exercise. The filing noted that South Shore expected to strike another agreement relating to the disposal of a “further 10 percent” in the subsidiary that owns The 13 Hotel. CST Group’s Tuesday filing didn’t clarify precisely where it sits in those arrangements.
South Shore has been suspended from Hong Kong trading since 9am on Tuesday.
In CST Group’s Tuesday filing, the company said it was purchasing a 10-percent equity interest in – and shareholder’s loan due from – an entity called Uni-Dragon Ltd, a British Virgin Islands-incorporated unit that indirectly owns the entire interests in New Concordia Hotel Ltd – the sole beneficial owner of The 13 Hotel.
CST Group also said that the acquisition deal could help the company “invest in the Macau property market”, and diversify its investment portfolio.
South Shore said in previous filings this year that it has not made any formal agreement with any Macau gaming concessionaires or sub-concessionaires in respect of gaming operations at The 13 Hotel.
South Shore reported a net loss of more than HKD5.84 billion for its fiscal year ended March 31, 2019, according to the company’s annual report filed in late August. The company had accumulated losses of over HKD7 billion as of that fiscal year.
The lack of gaming rights was a factor in a “significant reduction” in hotel occupancy and room rates compared to the anticipated ones, with a similar impact on revenue compared to what had been earlier in the company’s business plans, South Shore mentioned in its annual report.
Sep 25, 2020Australian casino operator Crown Resorts Ltd, said in a Friday filing that it had suspended “all activity” with external gaming-junket partners, with effect until June 30, 2021. The company...
Sep 25, 2020
”It will take many years, possibly three… to five years for… international visitor arrivals to return to 2019 pre-Covid-19 levels”
Chief executive of Singapore Tourism Board