Amax International Holdings has signed consecutive deals with a company owned by its Chairman and CEO that will see it lease and then take control of four gaming tables at a newly opened hotel and casino in Sihanoukville, Cambodia.
Under the terms of the deals, Amax subsidiary Victor Mind Global Ltd (VMG) will lease the tables from Lion King Entertainment Company Limited, which is wholly-owned by Ng Man Sun, for a period of 11 months until 30 September 2020 at a monthly rental of HK$1.2 million. Ng is not only Chairman and CEO of Amax but also holds a 27.74% stake in the company.
The lease deal will see Lion King continue to be responsible for the operation and management of the gaming tables – located in the mass market section of the casino and to be designated as baccarat – while VMG will be responsible for all costs. VMG will also be entitled to 100% of all house wins and losses.
Following completion of the lease deal, an Assignment Agreement will kick in under which Lion King will assign the Gaming Table Business Rights to VMG for a period of five years at a total consideration of HK$120 million.
In announcing the transactions, Amax revealed that it will cover the cost of assuming the Gaming Table Business Rights by transferring its entire 60% stake in Forenzia Enterprises Limited – which holds a license to operate online gaming in Vanuatu – to Lion King. Forenzia is valued at HK$58 million, with the remaining HK$62 million to be paid by the issuance of a Promissory Note upon commencement of the Assignment Agreement.
The hotel in question is Sunshine Bay Hotel in Sihanoukville, where Lion King has entered into a Casino Lease and Operation Agreement with the hotel operator that gives it lease rights over the casino and “certain prescribed areas” for 20 years until 30 September 2038. The casino, which opened on 9 October 2019, is called Century Entertainment and covers 2,586 square meters on the forth and fifth floors of the hotel, including a restaurant and office space.
Amax, which recently wrote off its US$45 million stake in shuttered Macau casino Greek Mythology, said the initial 11-month lease agreement was designed to give it time to become accustomed to running gaming operations before taking full control in September 2020.
“The Company sees attractive potential in the gaming market in Shihanoukville Municipal and would like to commence its business operation in the Casino as soon as practicable,” it said.