Flurry of investment in Vietnam
U.S.-listed Century Casinos Inc. has announced that an Austrian subsidiary has acquired 51 percent of a firm with the right to operate a small gaming hall at a hotel in Vietnam’s Cao Bang Province.
According to GGRAsia, Century Resorts Management GmbH has acquired 51 percent of Hong Kong-based Golden Hospitality Ltd. for a total consideration of US$560,000.
Golden Hospitality had agreements with a firm called Minh Chau Ltd., the owner of the hotel and an existing gaming club, under which Golden Hospitality would manage the hotel and gaming for a 26 percent cut of Minh Chau’s profit. Under the agreement, Golden Hospitality has also agreed to acquire a minimum of 51 percent of Minh Chau over the next three years for a consideration of approximately US$3.57 million.
Century Casinos said in the release, “The hotel offers 30 low-standard rooms and the international entertainment and gaming club currently offers seven electronic table games for non-Vietnamese passport holders under a provincial investment certificate that allows for up to 26 electronic games. Golden’s intent is to upgrade and expand the hotel and gaming entertainment facilities.”
Erwin Haitzmann and Peter Hoetzinger, the co-chief executives of Century Casinos, said in a statement, “We are excited about this opportunity to enter the Asian land-based gaming market with a relatively small initial investment but great upside development and investment potential.”
In an April note, John DeCree of Union Gaming Securities noted that Century would “like to expand to Asia, which is where investor expectations are.”
“We believe Century Casinos has upwards of US$50 million of available capital without pushing net leverage beyond 2.0 times, which could represent a decent-sized opportunity in a secondary or tertiary market in Asia,” he continued.
In an email to GGRAsia, he added, “Century has a history of partnering with local entities (i.e. in Poland and in Canada) and pursuing growth opportunities via joint ventures, initially to de-risk the project or acquisition.”
The company’s US$50 million casino project in Edmonton, Alberta is due to open in early 2019.
Century says minority shareholders of Golden include Asian investors “with many years of experience in the gaming and hospitality industry in Indochina,” according to Inside Asian Gaming. Century Casinos is also looking at hotel and gaming operations along the 800-mile Vietnamese border with China.
In other regional news, Provincial People’s Committee Chairman Nguyen Van Cao has OK’d an increase in the investment of the Laguna Lang Co. in its resort in Thua Thien Hue Province from US$175 million to US$300 million, with a total investment of up to US$2 billion. That would align with the 2017 government decree requiring a minimum US$2 billion investment by operators who want to participate in a three-year trial of locals gambling in the country. According to the Hue News, the expansion of Laguna Lang, which first opened in 2013, will be complete and ready to open sometime in 2026.
Also in Vietnam, Imex Pan Pacific Group recently met with leader of Khanh Hoa Province to express the desire of investing in the proposed North Van Phong Special Administrative-Economic Zone (SAEZ), which will be developed into an Asian tourism and commercial center.
The Vietnam Investment Review reports that the IPP Group plans to invest $50 billion into the Bac Van Phong SAEZ with joint venture partner KPMG of South Korea. Lee Dong Seok, vice general director of KPMG said, “We want to develop North Van Phong via investing in complex projects such as casinos, golf courses, tourism services and a seaport, which could accommodate the biggest ships of the world.”
