South Korea’s Lotte Tour Development Co is set to enter the gaming business after announcing on Friday that it will purchase the entire 100% stake in Paradise Group’s Paradise Casino Jeju Lotte.
Lotte Tour will pay a total consideration of KRW43.4 billion (US$38.8 million) for Paradise Casino Jeju Lotte, comprising KRW15 billion for the casino itself and another KRW28.4 billion to cover its debt.
Paradise Casino Jeju Lotte is located in Hotel Lotte Jeju, part of the Jeju Jungmun Resort complex.
Lotte Tour is also constructing what will be the tallest building in Jeju once complete in 2019, Jeju Dream Tower Integrated Resort, in partnership with Chinese real estate developer Greenland Group. At a cost of more than US$600 million, Jeju Dream Tower Integrated Resort will include a casino measuring almost 100,000 square feet and housing 190 gaming tables and 420 slot machines.
The sale of Paradise Casino Jeju Lotte will reduce Paradise Group’s casino operations to four – Paradise City in Incheon, Paradise Walkerhill in Seoul, Paradise Casino Busan and Paradise Casino Jeju Grand.
Local media reported over the weekend that Lotte Tour shares increased by 4.6% following news of its new casino investment to KRW20,600.
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