Australian-listed Silver Heritage Group has moved one step closer to selling off its Nepal integrated resort, Tiger Palace Resort Bhairahawa, after confirming it has received a conditional, binding offer.
The offer, from a Mr Indra Bahadur Thapa, would see him acquire the company’s Nepal operations at an enterprise value of US$33.9 million by taking ownership of the local Silver Heritage subsidiary holding its Nepal assets for US$20 million. The deal would see US$20 million paid in cash with Thapa also taking on a US$13.9 million lending facility with a consortium of Nepalese banks, the company said.
In a Wednesday announcement, Silver Heritage noted that the sale is dependent upon Thapa depositing US$3 million into an escrow account by 15 August, after which time he will be given 30 days to conduct due diligence.
Explaining its reasons for contemplating the sale, Silver Heritage stated, “After careful analysis, in which the Board of the company considered the terms of the offer, including the absence of a superior offer, and in conjunction with the material uncertainty related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern as disclosed by the company, the Board has therefore decided to grant the buyer the right to conduct due diligence and exclusivity … to facilitate definitive transaction documentation.”
Silver Heritage added there was no guarantee the offer would result in a transaction and that it would continue to pursue other funding options in the meantime.
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.