Asia-Pacific Strategic Investments Ltd, a company listed on an alternative board of the Singapore Exchange, says it has signed two cooperation agreements with Timor-Leste government officials, to acquire an “exclusive” casino licence and to set up a bank in the Southeast Asia country.
Asia-Pacific Strategic Investments stated that – via a subscription involving US$100-million in convertible bonds – there would be US$60 million spent in setting up the casino; US$20 million spent to establish the bank; US$10 million dispersed to fund “business expansion in Timor-Leste”; and US$9.8 million used for working capital.
The firm gave the information in a Tuesday filing to Singapore’s Catalist board.
The filing outlined that under the casino agreement, the company “and its consortium” would build a 5-star hotel, including “a respectable, high security, law abiding casino”.
As part of that, the investor would create a business plan detailing the number of gaming tables, hotel rooms and other amenities.
Asia-Pacific Strategic Investments would also “develop strategic plans to promote marketing for international customers” for the hotel and casino.
The firm would in addition “propose strategic plans to promote tourism in other disciplines including “whale/dolphin/crocodile watching, yachting and scuba diving”.
On its side, the Timor-Leste government would issue an “exclusive licence for development of a 5-star hotel and casino with conditions”.
The authorities would also “support the company and its staff in obtaining necessary permits and regulatory approvals,” as well as “coordinate with government agencies to ensure smooth operations”, and “facilitate and support… casino security”.
Either side may terminate the casino cooperation agreement with 30 days’ written notice to the other party.
The filing said the new bank would be established with Banco Nacional de Comercio de Timor-Leste, and that Asia-Pacific Strategic Investments would have a 60 percent shareholding in the new institution.
The company would run the bank, and also “develop strategic plans to establish the bank for local and international customers; and propose plans for the establishment of an asset management business”.
The government would “provide full access to enable the company to perform a due diligence on the bank; support the company in obtaining necessary permits, licences, and regulatory approvals; and “coordinate with government agencies and stakeholders to ensure smooth operations”.
The same termination terms mentioned for the casino agreement, apply to the bank agreement.
The company said the opportunity “represents the group’s potential entry into the financial and gaming sectors”.
“The company intends to seek shareholders’ approval for the expansion of its existing diversification mandate to broaden the group’s scope of businesses beyond its existing core business of real estate development, focusing on the hospitality sector and retirement villages,” it added.
The filing further stated that – subsequent to entering into the two agreements with the “Vice Prime Minister, Coordinating Minister for Economic Affairs”, and “Minister of Tourism and Environment” – Asia-Pacific Strategic Investments had signed a term sheet.
That was with Oei Hong Leong, its controlling shareholder, whereby Mr Oei and “his consortium” would subscribe for transferable convertible bonds in the company, in an amount up to US$100 million.
Such bonds could be converted into new ordinary shares of the company at any time from issuance, with a conversion price fixed at SGD0.002 (US$0.001478) per share.
Asia-Pacific Strategic Investments would, through “its sponsor”, PrimePartners Corporate Finance Pte Ltd, make an application to Singapore Exchange Securities Trading Ltd, for the listing and quotation of the conversion shares on the Catalist board.
