Hong Kong-based company International Entertainment Corporation, which showed interest in attaining 70% of Macau-listed Suncity International Holdings, announced mere days ago that the deal has not been inked yet.
A special report was released, according to which, the two companies are still negotiating the terms and details of the deal. In other words, no agreement has been reached between the two corporations or any of their subsidiaries.
International Entertainment is managed by Cheng Yu-tung’s family. The Hong Kong billionaire is known for being Stanley Ho’s business partner for quite some time. Ho, as previously mentioned, founded Macau casino and is currently holding the popular casino operator SJM Holdings Ltd. He has also been accused for being related with the Chinese Triad.
International Entertainment stated that it started discussing its terms with Alvin Chau Cheok-wa, beneficial owner of Suncity, back on January 9, 2014. Mr. Cheng’s company expressed its wish to attain 70% economic interest in the enterprise. This was to happen via purchasing 70% of Suncity’s shares. Thus, International Entertainment was to be gaining net profit from gaming advertising campaigns, organized by Sun City Gaming Promotions Co Ltd.
Since this was announced, turnover from gaming activities in Macau, generated from VIP players, has dropped considerably, posting a 19% decline in this year’s Q3. According to analysts, the main reason for this was that certain players tried to lie low, until Beijing is done with its fight against corruption in China.
Lately, Macau transport operators, who provide players with junkets to and fro the gaming hub, have been considering on transferring their customers to other casino destinations. Last week, Union Gaming Research Macau Ltd. gave permission to Suncity to transport VIP players to NagaCorp Ltd.’s casino venue in Cambodia. The junkets will be launched by December, 2014.
According to the latest report International Entertainment issued, concerning its activities during the past six months, the company profited most from hotel operations and granting properties, equipped for entertainment purposes, on lease.
One of the corporation’s indirect divisions has a twelve-year contract with the Philippine gaming regulator to grant gaming and office venues on lease. The agreement was inked on March 31, 2004.
Hong Kong-based International Entertainment announced that its overall profits marked a 39.4 decrease in the first six months of this year. A total of HKD39.77 million (US$5.1 million) were generated. By comparison, this time last year, International Entertainment’s profits amounted to HKD65.68 million.
The company ascribed the loss to “the net effect of the decrease in net exchange gain recognised for the period.”
Last week, it was reported that Cheng Yu-tung’s Hong Kong-based Chow Tai Fook Enterprises Ltd. Expressed interest in investing US$1.6 billion in the construction of new casino resort in Incheon, South Korea.
