Hong Kong-listed casino investor Landing International Development Ltd says it completed on Thursday the placing of 24 billion shares, raising net proceeds of HKD1.79 billion (US$229.2 million). “The company intends to apply the net proceeds from the placing for the development of Jeju Shinhwa World and other working capital of the group,” the firm said in a filing.
The placing shares – priced at HKD0.075 apiece – were subscribed by six independent third parties, with Kingston Securities Ltd as the placing agent, according to the filing.
Landing International is developing a casino resort on the holiday island of Jeju, in South Korea. The Jeju Shinhwa World complex (pictured in a rendering) had its initial-phase “grand opening” in April, with the launch of a 344-unit serviced resort condominium called Somerset Jeju Shinhwa World.
The company said recently that it would require more funding to complete the casino resort on Jeju. “It is currently estimated that a further investment amount of approximately US$1 billion will be required to cover the higher construction and development costs [for Jeju Shinhwa World], and the accelerated spending for the upcoming period,” the firm said in a filing on August 31.
Landing International also announced on September 7 that it would sell its Les Ambassadeurs Club and Casino – an upmarket gaming venue in London in the United Kingdom – for an aggregate consideration of HKD2.5 billion. The firm said it expected to record a gain before tax and consideration of other transaction costs of approximately HKD500 million from the disposal.
Following the placing exercise completed on Thursday, the chairman of Landing International, Yang Zhihui, saw his stake in the company reduced to nearly 50.3 percent from the current 60.0 percent. Mr Yang holds the stake via a holding company called Landing International Ltd.
