GGRAsia – Vietnam casino stake moving to Suncity boss listed firm

Vietnam casino stake moving to Suncity boss listed firm

Jun 23, 2017 Newsdesk Latest News, Macau, Rest of Asia, Top of the deck

A private company that owns 34 percent equity in a casino project in Vietnam and is itself indirectly wholly owned by Macau junket investor Alvin Chau Cheok Wa (pictured), is likely to be acquired by a Hong Kong-listed entity chaired by Mr Chau.

The exercise will potentially offer investors in the public company some exposure to the casino project in Hoi An, Vietnam.

The purchaser in the deal announced on Thursday is Goal Summit Ltd, a direct, wholly-owned, subsidiary of Suncity Group Holdings Ltd, the listed firm chaired and controlled by Mr Chau.

The seller is Suncity International Holdings Ltd, a British Virgin Islands company wholly owned by Mr Chau, according to Thursday’s filing.

Under a non-binding memorandum of understanding, the purchaser intends to acquire 50,000 shares in the target firm, representing the latter’s entire issued share capital.

The consideration for the purchase process has still to be determined. The filing mentioned it could either be by cash, or by issuance of promissory notes – whereby the purchaser would issue convertible bonds with a two-year maturity, that carry rights for conversion into new shares at a conversion price of HKD0.90 (US$0.1154) per share – or by a combination of those methods, or another route.

Thursday’s filing said the investment opportunity in the Vietnam project had been introduced to Suncity Group Holdings by Lo Kai Bong, also known as Andrew Lo, one of its executive directors.

The filing added: “As consideration for his services, Mr Chau agrees to procure the vendor to pay Mr Lo a certain percentage of the realised profit of the vendor upon realisation or disposal of its interests in the project subject to a maximum amount of HKD120 million.”

Mr Chau’s privately-held Macau junket investment vehicle Suncity Group is involved in the development of the casino resort in Hoi An in Vietnam’s Quang Nam province. The casino property is being promoted by Hoi An South Development Co Ltd, a joint venture between: Suncity Group; Vietnam-based asset management firm VinaCapital Group; and Gold Yield Enterprises Ltd, a subsidiary of Hong Kong-based Chow Tai Fook Enterprises Ltd.

Suncity Group Holdings changed its name from Sun Century Group Ltd in May this year. Until March 2012 the listed entity was known as Hong Long Holdings Ltd, and described itself as being involved in residential and commercial property development and property leasing in mainland China.