Shareholders of Suncity Group Holdings Limited have officially approved a HK$600 million acquisition of a 34% stake in Vietnam’s Hoi An South integrated resort, one of a handful of casinos tipped to take part in a three-year trial allowing locals to gamble.
The company announced this week that the takeover had received 100% approval at an extraordinary general meeting, with Suncity Group subsidiary Goal Summit Ltd to acquire the entire equity interest in and shareholder’s loan owed by Star Admiral Ltd, a subsidiary of Suncity International Holdings. Both Suncity International Holdings and Star Admiral Ltd are wholly-owned by Mr Alvin Chau, who is also the majority shareholder and an executive director of Suncity Group Holdings.
The first phase of the Hoi An South development is due to open in mid-2019, according to Suncity Group, with Phase 1 to include gaming facilities with 140 gaming tables and around 1,000 slot machines as well as a hotel, condos and a golf course.
Suncity Group Holdings had previously announced that its HK$600 million interest will be paid through a HK$303 million promissory note and HK$297 million in convertible bonds.
“The group is confident in the outlook for the tourism sector in Vietnam and believes there will be an increasing demand for resort facilities in popular tourist destinations in the country, including Quang Nam province, which has received almost a quarter of the country’s total number of foreign visitors in 2016,” the company said.
A circular from Vietnam’s Ministry of Finance issued earlier this month stipulates 1 December as the official start date for the country’s long-awaited three-year trial that will see locals allowed to enter its casinos for the first time subject to certain strict requirements. However, there has been no official announcement yet as to which casinos will be included in the trial.
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