Silver Heritage Group has completed an A.3 million (US.8 million) share sale to help finish construction of the company’s Tiger Palace casino on Nepal’s border with India.
The proceeds were from the institutional component of an offer the company says is fully underwritten and includes a retail component on sale now through the end of the month which is expected to yield another A$8.7 million.
The terms allow eligible shareholders to subscribe for two new ASX-listed Silver Heritage shares for each existing share they held as of July 4 at an offer price of five Australian cents per share.
The total in U.S. dollars amounts to $14.4 million.
Silver Heritage, which operates other casinos in Nepal and in Vietnam, has said it “encountered unexpected delays and cost overruns in relation to the completion” of Tiger Palace and in March appointed a new team to manage the project. The budget has been increased by more than US$11 million and stands currently at $51.8 million. It’s slated to open in phases beginning in September.
“We are in the right place geographically to address the rapidly growing Indian middle class,” said CEO Mike Bolsover. “Whilst we have had a challenging period developing the subcontinent’s first integrated resort, we have learned from our experience and have an excellent team in place now to execute the final stages of the build and pre-opening through to operations in the second half of the year.”
