Still subject to approvals
Gaming management solutions company Success Dragon International Holding Ltd. has announced it will buy a 45 percent stake in the deluxe One Opera Danang Hotel in Vietnam. In a filing to the Hong Kong Stock Exchange reported by Calvinayre.com, the company said it would pay a total consideration of US$14.13 million (HKD109.65 million) for the entire issued share capital in Vabis Building Consultants and Engineering Ltd. Vabis will hold a 45 percent stake, the filing said.
The 24-story, five-star hotel and commercial complex in the coastal Southeast Asian city covers 1,916 square meters (20,600 square feet) and includes an electronic gaming machine club. The deal is contingent on the “satisfaction of the conditions” set out in the agreement, including shareholder approval and appropriate licensing, the company reported.
The deal was first struck in 2015, at which time Hong Kong-based Success Dragon also contracted to offer electronic gaming at Le Meridien Hotel in Ho Chi Minh City. Under the deal, the company will exclusively manage electronic gaming machine clubs at both hotels for an initial term of 10 years.
“The directors believe that the acquisition will enable the group to have better control and management over the provision of management services,” the company said in a statement.
Success Dragon Chairman and CEO Carlos Luis Salas Porras is enthusiastic about the Vietnam market, in part because of the present low slot inventory in the country. He says the margins generated by the slot management business in Vietnam could be 100 percent higher than the margins in Macau.
