GGRAsia – Jimei to use bond cash for Australia, Cambodia gaming ops

Jimei to use bond cash for Australia, Cambodia gaming ops

Dec 04, 2015 Newsdesk Latest News, Rest of Asia, Top of the deck

Casino junket investor Jimei International Entertainment Group Ltd said the issue of convertible bonds worth HKD315 million (US$40.6 million) was completed on Wednesday. Net proceeds from the exercise – after deducting all related expenses – “are estimated to be approximately HKD314.7 million,” the Hong Kong-listed firm said in a filing.

The net proceeds “are intended to be used for general working capital … and as funds for future development of the existing business … including development of entertainment and gaming business in Australia and Cambodia,” it added.

Jimei International – controlled by Jack Lam Yin Lok, one of Macau’s most experienced casino junket executives – announced in February a junket arrangement with Crown Perth, a casino property in Western Australia operated by Crown Resorts Ltd. Under the junket arrangement, Jimei International said in an earlier filing it “has assisted to promote approximately eight to 10 gaming tables at the Crown Perth Casino”.

In May, Jimei International signed a similar deal with NagaCorp Ltd relating to seven VIP tables at the latter’s NagaWorld casino resort in Cambodia.

Under the subscription agreements announced in early November, Jimei International was initially to issue convertible bonds in the aggregate amount of HKD365 million. One of the subscribers however requested the completion of its subscription – worth HKD50 million – “to be deferred to on or before 18 December 2015,” said the firm on Wednesday.

“Based on the initial conversion price of HKD5.00 per conversion share, a maximum number of 63,000,000 conversion shares may fall to be allotted and issued upon exercise of the conversion rights attached to the convertible bonds (excluding the deferred bond) in full,” it added.

In August, Jimei International reported a HKD52.8-million net profit for the first half of 2015. The junket investor said the turnaround had been “mainly driven by the profit contributions from the newly developed entertainment and gaming business”.