GGRAsia – Suncity listco concludes stake acquisition re Manila scheme

Suncity listco concludes stake acquisition re Manila scheme

Jan 09, 2020 Newsdesk Latest News, Philippines, Top of the deck

Hong Kong-listed Suncity Group Holdings Ltd, controlled by the boss of Macau casino junket brand Suncity Group, Alvin Chau Cheok Wa, has concluded the acquisition of a majority stake in a Philippines-listed firm that in late October said it would “build and operate the hotel and areas of the casino” on the “Westside City Resorts” project, on land near Manila Bay in the Philippine capital.

Suncity Group Holdings has now acquired a 51-percent stake in Philippine firm Suntrust Home Developers Inc, according to a Wednesday filing by the latter to the Philippine Stock Exchange. The deal was first announced in October, in connection with Suntrust’s Westside City Resorts project announcement.

The Suncity listco’s wholly-owned subsidiary Fortune Noble Ltd acquired 2.55 billion shares in Suntrust on December 20, for PHP1.00 per share; a total consideration of PHP2.55 billion (US$50.4 million).

The casino plan had been mentioned in a Hong Kong filing in late October by Suncity Group Holdings. According to that filing, the project would have total gaming capacity of 400 tables to serve the VIP and mass markets, and 1,200 slot machines.

The Manila Bay site had previously been earmarked for a casino developed by Travellers International Hotel Group Inc, a venture between Philippine-listed conglomerate Alliance Global Group Inc and Hong Kong-listed casino cruise ship operator Genting Hong Kong Ltd.

Now Suncity Group Holdings is to make payments – including an initial US$200 million to a party linked to Travellers International – to develop and operate the site via the parties related to Suncity Group Holdings.