Jimei International Entertainment Group Ltd has announced the termination of a proposed deal with Macau junket operator New International Club Ltd that would have seen Jimei become an indirect partner in its junket business.
In a filing to the Honk Kong Stock Exchange, Jimei said it had intended to enter into a definitive VIE agreement with New International Club and a Macau concessionaire “only after the terms of cooperation negotiated with the concessionaire are substantially finalized so that the promoter could commence business immediately after establishment of the VIE structure.”
Instead, “No agreement on the terms of cooperation is reached with the concessionaire in respect of the indirect participation in the gaming promotion business in Macau, and it is considered that no agreement could be reached with the concessionaire upon such prolonged period of negotiation.
“Accordingly, the VIE Parties agreed to terminate the Macau Framework Agreement and decided not to proceed with the possible cooperation.
Termination of the deal follows a number of previous deadline extensions for completion of the agreement, with the latest coming in March when the deadline was extended to June. It was first announced in February 2015.
“As a result of the termination, the negotiation between the VIE Parties will be discontinued, and no definite VIE Agreements will be entered into among the VIE Parties,” Jimei said.
“The Board considers that the termination of the Macau Framework Agreement will not have any material adverse impact on the business, operation and financial position of the Group.”
It’s been a rough year for Jimei International so far. The Group previously announced a loss of HK$51 million in 2016, saw its deal promoting seven VIP tables at Cambodia’s NagaWorld come to an end and terminated an agreement with two independent third parties in regards to other possible projects in Cambodia.
Former majority shareholder Jack Lam recently sold off his stake in the company, with the Group now proposing to change the company name to Starlight Culture Entertainment Group Ltd.
