Hong Kong-listed investor New Silkroad Culturaltainment Ltd. has agreed to sell its stake in MegaLuck Company Ltd. to an individual shareholder, Yu Cheng Kuo, for $3.6 million.
The sale gives Kuo a 79 percent interest in the company, which operates the MegaLuck Casino in Jeju, South Korea—his previous 7 percent stake, plus New Silkroad’s 72 percent.
The remaining 21 percent is held by other private investors.
New Silkroad is cutting its losses after a three-year downward streak that began during the Covid-19 pandemic, reports Inside Asian Gaming: $36 million in 2021, $1.5 million in 2022, and $8.3 million in 2023.
In a statement, New Silkroad explained, “As it is expected that the global economy will continue to remain slow and stagnant, affecting the tourism industry in Jeju Island, the board does not consider that the prospects of (MegaLuck Company) would turn positive in the near future and considers it appropriate and is prepared to divest the group’s business in South Korea.”
Per IAG, New Silkroad also develops and operates real estate in Australia, produces and distributes wine in China and offers property management services in China.
