Hong Kong-listed China Star Entertainment Limited is expected to announce today that it has completed the sale of Hotel Lan Kwai Fong Macau to Macau-based gaming firm Paradise Entertainment after trading in shares was halted on Wednesday.
In a filing to the Hong Kong Stock Exchange, China Star Entertainment said that trading had been halted “pending the issue of an announcement in relation to a legally binding agreement entered into by a wholly-owned subsidiary of the company … regarding the disposal of a group of subsidiaries of the company which owns and operates Hotel Lan Kwai Fong Macau and a few other residential units in Macau.”
It follows an announcement by Paradise in June that it had entered into a letter of intent with China Star Entertainment to acquire Hotel Lan Kwai Fong, a five-star hotel and casino located on the Macau Pensinsula.
An exclusivity agreement regarding negotiations between the two parties expired on 30 September.
Nevertheless, completion of the HK$2.38 billion deal would see Paradise acquire three companies that currently own and operate the property – Most Famous Enterprises Limited, Exceptional Gain Profits Limited and Charming Era Investment Limited.
Aside from its casino operations located on the ground, first and 18th floors, Hotel Lan Kwai Fong boasts 209 guest rooms, restaurants, retail outlets and a spa.
Paradise said in June that it “continued to look for potential opportunities in the dynamic gaming industry in Macau and elsewhere to expand its business and to increase its market share in the gaming industry.
“The proposed acquisition is in line with the group’s business strategies and represents a development of the group’s existing casino management service business,” it added. “In addition, having its own hotel business will enable the group to directly provide hospitality services to its patrons (instead of relying on hospitality services provided by other hotels) to support the Group’s existing casino management services business.”
Paradise Entertainment, headed by Chairman and Managing Director Jay Chun, is the parent company of Kam Pek casino in Macau and of LT Game, a leading supplier of electronic gaming systems in Macau.