Buyer is “King of Penny Stocks”
Hong Kong-listed casino company Landing International Development Ltd. will sell Les Ambassadeurs, a high-end gambling club in London, for an aggregate amount of HKD2.5 billion (US$320.0 million), said the company said in a September 7 filing.
“Based on the latest figures as at the date of this announcement, the group estimates that it will record a gain before tax and consideration of other transaction costs of approximately HKD500 million from the disposal, representing a return on investment of approximately 30 percent to 35 percent expressed as the ratio of estimated gain over initial acquisition consideration,” the filing stated.
The buyer was identified in the filing as Paul Suen Cho Hung, a Hong Kong investor and owner of an English football club in Birmingham City, reported GGRAsia. The businessman has been nicknamed “The King of Penny Stocks,” added Inside Asian Gaming. Suen is chairman of Hong Kong-listed Enviro Energy Holdings Ltd. and has previously served in the same capacity at a number of other Hong Kong companies including BEP International Holdings Ltd., Hailing International Holdings, Huajun Holdings Ltd. and Mission Capital Holdings Ltd.
Landing also owns and operates the Landing Casino at the Hyatt Regency Jeju Hotel on the resort island of Jeju in South Korea, and is developing a second casino project on the island, called Jeju Shinhwa World. The resort complex marked its Phase I grand opening in April with the debut of a 344-unit condo complex, Somerset Jeju Shinhwa World.
Landing bought Les Ambassadeurs in April 2016 for approximately US$171.6 million. The elite gambling club offers 45 gaming tables including roulette, baccarat, blackjack and three-card poker. Les Ambassadeurs generated revenue of HKD427.9 million (US$54.7 million) in the first half of 2017, with net profits of HKD28.4 million, the company said.
“While Les Ambassadeurs performed well in 2016 and the first half of 2017, the directors consider that this opportunity to divest is in line with the company’s latest business focus and represents a good return for the shareholders,” Landing stated in its filing.
The company added that the “significant expected gain on the disposal” would “strengthen the group’s cash flow and working capital position to enhance its ability to focus on the development of Jeju Shinhwa World, while remaining in a good position to invest in any opportunities with good prospects.”
Landing International has said it needs at least US$1 billion more to complete the Jeju Shinhwa World.
The company added that it “is currently looking for opportunities to diversify into emerging markets in Southeast Asia which offer high growth potential and favorable investment terms,” including a proposed integrated resort similar to Jeju Shinhwa World in the Philippines, reported Inside Asian Gaming.
