GGRAsia – Sinogreen to develop junket business in Macau

Sinogreen to develop junket business in Macau

Nov 24, 2014 Newsdesk Latest News, Macau

Sinogreen Energy International Group Ltd, a Hong Kong-listed firm controlled since September by Macau junket investor Jack Lam Yin Lok, said in a new filing it plans to use money raised in a corporate funding exercise to develop a junket business in Macau.

Friday’s filing said Sinogreen would use Mr Lam’s “expertise and experience” in order to “explore the opportunity of developing the gaming promotion business in Macau”. Mr Lam is chairman of Jimei Group Ltd, one of Macau’s largest consolidators of gaming promoters.

Currently Jimei runs Jimei Casino next door to the Grand Lapa hotel on Macau peninsula under an SJM Holdings Ltd gaming licence. Jimei also has junket rooms in seven other Macau properties including Wynn Macau, Sands Macao and City of Dreams, according to Jimei’s website. Jimei also operates Fontana Leisure Parks & Casino at Clark Special Economic Zone in the Philippines.

Sinogreen added in Friday’s filing that of the HKD164.4 million (US$21.2 million) the firm raised via a share subscription and issue of convertible notes announced on July 25, it planned to use nearly 60 percent – HKD96.9 million – for “establishing its gaming promotion business in Macau,” including HKD66.9 million for gaming credit for players and working capital. It would also allocate HKD10 million in legal fees and HKD20 million for office leasing and administrative expenses.

A further HKD37.5 million of the HKD164.4 million would be for repayment of loans. The company planned to allocate the remaining HKD30 million for trade in chemical products and energy conservation – relating to the core business of the original company.

Sinogreen’s shareholders will be asked at a special general meeting in Hong Kong on December 18 to approve changing the firm’s name to Jimei International Entertainment Group Ltd.

Following a share subscription completed in September, Mr Lam and parties associated with him assumed control of 65.85 percent of Sinogreen Energy’s capital.