Macau’s Paradise Entertainment Ltd has flagged a likely substantial increase in shares held by Chairman and Managing Director Jay Chun via a proposed repurchase mandate.
In a Friday announcement, Paradise said it will seek authority from shareholders to allow the company’s directors to purchase up to 105,218,531 of its shares on the market, equal to around 10% of current issued share capital. The proposal will be voted on at Paradise’s AGM on 21 May 2019.
Outlining the likely outcomes of a repurchase mandate, Paradise said the shareholding of Chun and a company wholly-owned by him, August Profit Investments Limited – which together hold 59.96% of issued share capital – would rise to 66.63% if the full mandate was exercised.
However, it added that the repurchase mandate would not reduce the aggregate amount of shares in public hands to below 25%, nor would it lift Chun to a level that would require him to make a mandatory takeover offer under the Takeovers Code.
Paradise is the developer of Macau’s popular Live Multi-Game terminals and operates two casinos on the Macau peninsula – Casino Kam Pek Paradise and Casino Waldo.
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