GGRAsia – Success Dragon to buy stake in 5-star hotel in Vietnam

Success Dragon to buy stake in 5-star hotel in Vietnam

Apr 01, 2016 Newsdesk Industry Talk, Latest News, Rest of Asia

Gaming services firm Success Dragon International Holdings Ltd on Wednesday announced that it has entered into an agreement to acquire a stake in a five-star hotel – as well as land for further development – in Danang, Vietnam.

The Hong Kong-listed firm said it would pay – via a subsidiary – a total consideration of US$14.13 million for the entire issued share capital in Vabis Building Consultants and Engineering Ltd. Vabis will hold a 45-percent stake in a holding company to be incorporated in Vietnam that would own the hotel and plot of land in Danang, Success Dragon said in a filing to the Hong Kong Stock Exchange.

The filing identified the hotel as the One Opera Danang Hotel (pictured), described as a five-star hotel and commercial complex and located in Vietnam’s fourth-largest city. The deal includes also the electronic gaming machine club operated in the premises of the hotel.

In December, Success Dragon said it had made two agreements to manage electronic gaming machines at gaming clubs in two five-star hotels in Vietnam, including at the One Opera Hotel. Under the deal, Success Dragon was appointed as exclusive manager of games with prizes at the electronic gaming machine club at One Opera Hotel for an initial term of 10 years.

“The directors believe that the acquisition will enable the group to have better control and management over the provision of management services” under the agreement to manage the electronic gaming machine club at One Opera Hotel, the firm said in Wednesday’s filing.

As of the date of the latest filing, the hotel was still in the process of obtaining the requisite business certificate for the operation of electronic games business, said Success Dragon.

Success Dragon said last week it expects its annual loss to widen in the financial year ending March 31, as it repositions the firm to expand its gaming services business.

In the financial year ending March 31, 2015, the company reported an audited consolidated net loss of approximately HKD47.26 million (US$6.09 million).