GGRAsia – Intl Entertainment stock seesaws amid Suncity deal chatter

Intl Entertainment stock seesaws amid Suncity deal chatter

Dec 30, 2014 Newsdesk Latest News, Macau, Top of the deck

Shares of International Entertainment Corp seesawed wildly on Tuesday, rising 50.87 percent by the end of Hong Kong trading to close at HKD2.61 (US$0.34) after falling 19 percent the previous day.

The Hong Kong-listed company that in January announced it was interested in buying a 70-percent economic interest in Macau junket investor Suncity International Holdings Ltd.

The suitor firm said in a filing on Monday evening it was “not aware of any reasons for such fluctuation” in either the share price or in the trading volume seen on Monday. It noted that an exclusivity period for the Suncity deal is due to expire on Wednesday, but stressed that “that no definitive agreement in relation to the possible acquisition has been entered into”.

International Entertainment is controlled by the family of Hong Kong billionaire Cheng Yu Tung, who has been a long-term business partner of Stanley Ho Hung Sun, founder of Macau casino concessionaire SJM Holdings Ltd.

On January 9, International Entertainment said it had entered into a term sheet with Suncity International – the potential vendor – and Alvin Chau Cheok Wa, the sole beneficial owner of the vendor – about acquiring a 70-percent economic interest in the business.

In late November, it was reported that Mr Cheng’s privately held Hong Kong conglomerate Chow Tai Fook Enterprises Ltd had signed a letter of intent to invest US$1.6 billion to create a new South Korean casino resort at Incheon, near the country’s capital Seoul. In early December, Chow Tai Fook was also linked with a possible casino project in Vietnam.

Updated at 4.50pm