Frontier Capital Group Shareholders Approve Casablanca Casino Acquisition

Frontier Capital Group Ltd. shareholders approved on Thursday the proposed acquisition of Stotsenberg Leisure & Hotel Corporation, including Stotsenberg Hotel and Casablanca Casino, located in the Philippines’ Clark Freeport Zone. The deal is to be completed later in January and the Australia-listed group is to pay the amount of $26 million for the hotel and casino complex.

Frontier Capital announced its decision to buy Stotsenberg Leisure & Hotel Corporation back in November 2015. It will pay the above-mentioned consideration in 154.05 million Frontier Capital shares that will be transferred to the vendor in three tranches.

The company said on Thursday that its shares have been suspended so that it can change the description of its activities after the acquisition of the hotel and casino complex. The shares are to be suspended up until the Australian Securities Exchange approves the re-compliance with its rules.

The Stotsenberg Hotel currently features 239 rooms as well as a number of food and beverage options, attractions, and a convention center with room for up to 2,000 people. As for Casablanca Casino, it is inspired by the popular hit film and has 36 gaming tables, 190 slot machines, and two rooms for VIP gambling customers. The complex is located in the Clark Freeport Zone, not far from the Clark International Airport.

E!xcite Gaming and Entertainment Inc. would operate the hospitality and gaming business. Frontier Capital said that E!xcite has promised a guaranteed profit of $5 million per year for the next five financial years. The operator would be issued 28.4 million shares that would represent the guaranteed $5-million profit. If, however, the hotel and casino venue does not generate the said Net Profit After Tax for each of the 2016-2020 fiscal years, E!xcite would pay Frontier Capital the difference between the initially promised $5 million and the actual NPAT.

What is more, Frontier Capital also revealed that it plans to increase the number of slot machines at the casino to 250 and the number of gaming tables to 47, excluding those featured at its VIP rooms. And under the said expansion plan, Casablanca Casino would also feature live telephone betting or proxy betting, as it is known by industry peers.

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