GGRAsia – Suncity deal not yet done: International Entertainment

Suncity deal not yet done: International Entertainment

Jul 18, 2014 Newsdesk Latest News, Macau, Top of the deck

International Entertainment Corp – a Hong Kong-listed company that in January announced it was interested in buying a 70-percent economic interest in Macau junket investor Suncity International Holdings Ltd – says in its annual report that the deal has not yet been concluded.

The report dated June 20 and filed on Friday, states: “As at the date of this report, the company is still in the process of negotiation with the relevant parties on (among other matters) the detailed terms of the possible acquisition and no definitive agreement in relation to the possible acquisition has been entered into by the company or any of its subsidiaries with any party.”

International Entertainment describes its current main activities as “hotel operations, and leasing of properties for casino and ancillary leisure and entertainment operations”.

On January 9 it said it had entered into a term sheet with Suncity International – the potential vendor – and Alvin Chau Cheok Wa, the sole beneficial owner of the vendor – about acquiring a 70 percent economic interest in the business. It was to be effected via purchase of a 70-percent equity interest in Suncity International, which in turn International Entertainment said was entitled to all the net profit from gaming promotion operations by Sun City Gaming Promotions Co Ltd.

In January the deal was described as worth HK$7.35 billion (US$948 million), to be settled in cash and through the issue of new shares at HK$5 each, representing up to 29 percent of the enlarged share capital of International Entertainment.

On Friday, the firm said that at its annual general meeting on August 19, it will ask stockholders to agree to the issuing of new shares up to a maximum of 20 percent of the share capital at the date of the meeting, and to repurchase shares up to a maximum of 10 percent of the issued shares at that date.

International Entertainment is controlled by the family of Hong Kong billionaire Cheng Yu Tung, who is a long-term business partner of Stanley Ho Hung Sun. Mr Ho was a founder of Sociedade de Turismo e Diversões de Macau SA, which held a four-decades monopoly on casino gaming in Macau, and he also started its successor SJM Holdings Ltd, a current Macau casino concessionaire.

Mr Cheng’s son Cheng Kar Shun, the chairman of International Entertainment, is listed in SJM’s 2013 annual report as a non-executive director of SJM following his father’s retirement from the SJM board in May last year. Mr Cheng junior directly holds 0.05 percent of SJM, according to the report.

The Cheng family also controls Hong Kong property developer and hotel operator New World Development Co Ltd, and the world’s biggest chain of jewellers measured by turnover, Chow Tai Fook Jewellery Group Ltd.