Inside Asian Gaming

INSIDE ASIAN GAMING DECEMBER 2018 14 SKYCITY ENTERTAINMENT GROUP Limited has found a buyer for its Darwin business with US firm Delaware North agreeing to purchase SKYCITY Darwin for AU$188 million. The sale will see Delaware North acquire 100% of SKYCITY Darwin Pty Limited on a cash-free and debt-free basis. SKYCITY has also retained the ongoing right to access the VIP and premium gaming facilities at the Darwin casino for its International Business customers for at least two years after completion of the sale. In an announcement, the two companies – SKYCITY and Delaware SKYCITY DARWIN SOLD FOR AU$188 MILLION NagaCorp CEO Chen Lip Keong has further increased his shareholding in the company with the purchase of 5.29 million shares for a total consideration of HK$38.9 million. NagaCorp revealed that Dr Chen had completed the on-market purchase of the shares in three batches between Wednesday 31 October and Friday 2 November, lifting his total stake in the company to approximately 2.87 billion shares Dr Chen gained control of the company in August 2017 after exercising conversion rights with respect to TSCLK Complex Convertible Bonds and NagaCity Walk Convertible Bonds issued to him in 2016. The TSCLK Complex Convertible Bonds were originally issued to him following the acquisition of his former company TSC Inc by NagaCorp. TSC holds the rights to the neighboring TSCLK Complex, better known as Naga2, which launched late last year. The NagaCity Walk Convertible Bonds relate to a separate deal which saw NagaCorp acquire City Walk Inc, the holding company for the NagaCity Walk project that connects NagaWorld with Naga2. NagaCorp boss increases stake “We see both International Business and the online space as future growth areas for us, so we see value in this outcome,’’ he said. “The sale is consistent with our ‘capital lighter’ strategy to sell non-core assets and to allocate capital to assets and businesses which we feel are aligned with our long- term strategic objectives. As always, our top priority is to deliver attractive and sustainable returns for shareholders. “It also allows us to concentrate our Australian activities in Adelaide, which is undergoing an AU$330m expansion, due for completion in late 2020.’’ North – revealed that they plan to enter into a joint venture to establish an online casino business based out of the Northern Territory should there be any future change in legislation in Australia permitting online gaming activities within the next decade. Inside Asian Gaming understands there is currently a concerted push to have online poker legalized in the near future although online casino games are likely many years away. Commenting on the transaction, SKYCITY CEO Graeme Stephens said the sale was a positive result for the company.