Jay Chun, chairman and managing director of Hong Kong-listed Paradise Entertainment Ltd, has spent about HKD323,880 (US$41,263) with two transactions in the space of three days, to acquire an aggregate of 356,000 shares in the company. The move comes amid a plunge in the firm’s stock value following the June 9 news that all satellite gaming operations in Macau will close by year-end.
As well as making gaming equiment, Paradise Entertainment provides casino management services for the satellite gaming venue Casino Kam Pek Paradise in downtown Macau.
The company had a voluntary halt in the trading of its shares at 2.27pm on June 9, prior to a Macau government annoucement about the fate of Macau’s 11 satellites. The firm’s trading restarted at 9am on June 10.
That day, Mr Chun (pictured in a file photo) made an initial move to increase his long position in Paradise Entertainment. On June 12, he effected another purchase, so that the two exercises took him to 60.00 percent, from an original 59.96 percent, as per disclosure records of the Hong Kong bourse.
On June 10, Mr Chun had bought 288,000 shares in his company at an average price of HKD0.87 per share; and on June 12, another 68,000 shares at an average price of HKD0.99 per share.
Casino Kam Pek Paradise is one of nine Macau satellite casinos relying on the gaming rights of local casino operator SJM Holdings Ltd. Paradise Entertainment also supplies casino equipment under the LT Game brand.
Paradise Entertainment’s stock had been priced at HKD1.83 at the opening of business on June 9, but lost some value prior to the trading halt. Its lowest point on June 10 was HKD0.65, before it closed at HKD0.88 that day. On June 12, it recovered to HKD1.00 at market close.
By the close on Friday (June 13) it fell back to HKD0.95.
