The Chairman of Australian-listed Silver Heritage Group, James Spenceley, says management is in “advanced discussions” regarding the company’s financial future as it weighs its options to raise much-needed capital, including the potential sale of flagship Nepal IR, Tiger Palace Resort.
Silver Heritage revealed in May that it was scouting prospective buyers of its Nepal operations following the sudden termination of a long-standing agreement to provide gaming management services at Phoenix International Club in Vietnam, which contributed around 45% of the group’s revenue in 2018.
Inside Asian Gaming understands selling Tiger Palace Resort is still considered a last resort, however Spenceley told shareholders last week the company needed to either release capital from its current asset base or raise new capital to service its operating and funding costs.
“The Board and senior management have been working hard with the assistance of its advisors to identify and progress discussions with third parties in respect of such solutions,” he said.
“I am pleased to say that we have made progress on this and we are in advanced discussions in respect of several options in this regard.”
Despite the prospect of losing Tiger Palace Resort, located in southern Nepal just eight kilometers from the border with India, Silver Heritage said it “remains convinced of the long-term thesis of the Tiger Palace investment” with GGR up 52% year-on-year through May and major infrastructure projects nearing completion.
They include a new six-lane highway running directly from the border crossing to Tiger Palace and construction of a new international airport, due to open in March 2020, that will allow for direct international flights.
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