Success Dragon Withdraws from Vietnam

Hong Kong-listed Success Dragon International Holdings has cancelled its plan to acquire 45 percent of One Opera Danang Hotel (l.), a luxury hotel in Vietnam. The company had planned to pay HKD109.65 million (US$14.13 million) for the property.

Early signs the deal would fall through

Gaming management solutions company Success Dragon International Holding Ltd. has stepped away from its plan to buy a 45 percent stake in the deluxe One Opera Danang Hotel in Vietnam.

In a filing to the Hong Kong Stock Exchange in April, 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.

But in a new filing, the firm terminated its plan to buy the hotel and a plot of land in Danang, according to The deal also included an electronic gaming machine club that operates in the hotel.

The company said it was bowing out because the vendor, My Ngoc Nguyen, has had “difficulty in obtaining the requisite consent for the implementation of the (asset) reorganization.” The original deal, first struck in 2015, was contingent on the “satisfaction of the conditions” set out in the agreement, including shareholder approval and appropriate licensing, the company reported. In March, Success Dragon warned the acquisition “may or may not materialize.”