Home » » Owner increases stake in Macau Grand Emperor Hotel

Owner increases stake in Macau Grand Emperor Hotel

Written By Unknown on Tuesday, October 9, 2018 | 11:24 AM

Casino – CalvinAyre.com
Owner increases stake in Macau Grand Emperor Hotel

Emperor International Holdings Limited, through subsidiary Emperor Entertainment Hotel Limited, announced it was increasing its stake in the operator of Macau’s Grand Emperor Hotel.

Macau Grand Emperor Hotel owner increases stakeAccording to a filing with the Hong Kong Stock Exchange, Emperor Entertainment will be purchasing the 15% stake in Luck United, indirectly non-wholly owned by Emperor Entertainment, for a total of HKD460 million ($58.7 million), from Big Wheel Limited.

HKD138 million ($17.6 million) has been paid to Big Wheel, with the remaining HKD322 million ($41.1 million) to be paid upon completion of the sale.

“Upon Completion, the Purchaser will hold 75% equity interest of Luck United and the financial information of Luck United shall continue to be consolidated into the consolidated financial statements of [Emperor Entertainment],” the statement read.

Emperor International and Emperor Entertainment pointed out that the sale of the shares was at a 40.67% discount on the consolidated net asset value of Luck United, as of August 31 of this year. According to the companies, “[t]he board of directors of both Emperor International and [Emperor Entertainment] believe that the Acquisition represents a tremendous opportunity to increase the stake in Luck United at a deep discount.”

Taken into account in negotiations was “the relatively low liquidity of the Sale Shares for [Luck United] not being a listed company.”

They noted that “[i]n recent years, [Luck United] continued to achieve a stable performance in entertainment and hospitality services in Macau and generate recurrent income stream for [Emperor Entertainment] and Emperor International.” Luck United posted a profit after taxation of HKD285.4 ($36.4 million) for the year ended March 31, 2018, a 39% increase from the preceding year.

Emperor International and Emperor Entertainment said, “The Acquisition can realise the expansion of such good investment opportunity. In addition, the Acquisition will enable [Emperor Entertainment] to utilize financial resources efficiently.”

Emperor International reported a profit for the year ended March 31 of HKD3.6 billion ($462.6 million), a 1.9% decrease from the year ended March 31, 2017. Its revenue from hotel operations and related services was HKD1.6 billion ($204.2 million), a 5.7% decrease from the previous year period.

The post Owner increases stake in Macau Grand Emperor Hotel appeared first on CalvinAyre.com.

SHARE

About Unknown

0 comments :

Post a Comment