Hong Kong real estate developer Far East Consortium International Ltd said this week it has received approval from the Hong Kong Stock Exchange to proceed with a spin-off of its Czech gaming business, Palasino Holdings.
In a filing, Far East – which also holds a stake in Australian casino operator Star Entertainment Group – said the spin-off will likely be implemented by way of a global offering, comprising a Hong Kong Public Offering and an International Offering which would result in a separate listing of the Palasino Shares on the Main Board of the Hong Kong Stock Exchange.
Far East would retain at least a 50% stake in Palasino, which would remain a subsidiary of the company.
First purchased by the group in 2018, the Palasino brand – operating under Trans World Hotels & Entertainment – comprises three casinos and one ancillary hotel in the Czech Republic, plus three hotels in Germany and a hotel in Austria.
Explaining the reasons for spinning off its Czech gaming business, Far East said it would provide “flexibility and a separate fund-raising platform for the Spin-off Group in raising future funds from the capital markets to support its growth” and would “better reflect the value of the Spin-off Group on its own merits”. This, it added, would increase its operational and financial transparency through which investors would assess the performance and potential of the Spin-off Group separately and independently from the remaining group. It would also allow the management of both listed entities to focus more effectively on their respective businesses, enhancing efficiency in their respective decision-making processes and responsiveness to market changes.
The exact timing of such spin-off has not yet been determined.
Far East, best known for its global property development interests, owns a 4.99% stake in Australia’s Star Entertainment Group and is a 25% partner, alongside Chow Tai Fook (25%) and Star (50%), in the AU$3.6 billion Queen’s Wharf Brisbane integrated resort development, due to open in April 2024.
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