Suncity Group Holdings Limited has completed the acquisition of its 34% stake in Vietnam integrated resort project Hoiana.
After a series of delays while the company finalized its financing, Suncity finally announced in a filing to the Hong Kong Stock Exchange this week that the deal was completed on 28 August – almost 10 months since shareholders first green-lighted the deal in November 2017.
The Hoiana acquisition sees Suncity Group subsidiary Goal Summit Ltd take on the entire equity interest in and shareholder’s loan owed by Star Admiral Ltd, a subsidiary of Suncity International Holdings. Both Suncity International Holdings and Star Admiral Ltd are wholly-owned by Mr Alvin Chau, who is also the majority shareholder and an executive director of Suncity Group Holdings.
The first phase of the Hoi An South development is due to open in mid-2019, according to Suncity Group, with Phase 1 to include gaming facilities with 140 gaming tables and around 1,000 slot machines as well as a hotel, condos and a golf course.
Its HK$600 million interest has been paid through a HK$303 million promissory note and HK$297 million in convertible bonds.
“The group is confident in the outlook for the tourism sector in Vietnam and believes there will be an increasing demand for resort facilities in popular tourist destinations in the country, including Quang Nam province, which has received almost a quarter of the country’s total number of foreign visitors in 2016,” the company said previously.
The Hoi An South project is a collaboration between Suncity Group, local asset management firm VinaCapital Group and Chow Tai Fook Enterprises Ltd subsidiary Gold Yield Enterprises Ltd.
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