An agreement that would have allowed Jimei International Entertainment Group Ltd to participate indirectly in VIP gambling promotion in Macau has been terminated due to “no agreement on the terms of cooperation… with the concessionaire,” said the company in a Wednesday filing to the Hong Kong Stock Exchange.
Jimei International didn’t name the Macau concessionaire that had been involved in the talks.
The so-called variable interest entity (VIE) agreement to allow such indirect participation in Macau VIP gambling promotion had first been proposed in February 2015.
At the time that deal was announced, Jimei International was a business controlled by Macau junket veteran Jack Lam Yin Lok. But Mr Lam in April sold a 65.05-percent stake that he held in Jimei International via another entity controlled by him. Earlier this month, Mr Lam – who also has privately-held interests in Macau junket operations – stepped down as chairman of Jimei International and is no longer an executive director of the company.
In Wednesday’s filing, Jimei International said it considered “that no agreement could be reached with the concessionaire upon such prolonged period of negotiation”.
“The termination of the Macau Framework Agreement will not have any material adverse impact on the business, operation and financial position of the group,” added the Hong Kong-listed firm.
In December, the Philippine Amusement and Gaming Corp – that country’s casino regulator – ordered the closure of two casino facilities in the Philippines associated with Mr Lam’s non-listed business interests. The closures came amid Philippine government allegations of unauthorised online gambling operations.
At the time Jimei International issued a statement saying the action was Mr Lam’s “own personal matter and in no way materially affects or involves the company and its subsidiaries nor is it expected to affect the normal business operation of the group nor any other current or future plans”.
Feb 16, 2018Due to the Chinese New Year holiday, the GGRAsia team will be off between February 16 and 19. We will be back on February 20. We wish all our readers a prosperous Year of the Dog!
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”A challenge to Macau's economic model could potentially emerge over the longer term should China revise existing criminal laws that prohibit most forms of gambling in the mainland... Even in such a scenario, Fitch would expect this to occur gradually”
Fitch Ratings Inc