In a filing released on Wednesday, it was announced that Jack Lam, a veteran junket investor of Macau, will no longer hold the position as the Jimei International Entertainment Group chairman.
The change was effective immediately, with Lam also stepping down from the position as executive director. Yan Xu replaced Lam as the chairman of the board for Jimei International, taking over on May 31st. Since May 11th, Yan held the position as an executive director.
According to the company, Luo Lei, an executive director, will be taking on the role as chief executive officer. The board of directors will also be changed up at Jimei International due to Tsui Kin Ming leaving his position within the executive directors. The board saw three non-executive directors stepping down, which included Macau Association of Gaming and Entertainment Promoters President, Kwok Chi Chung.
The resignation of Lam and the board of director changes come just after a deal where Lam sold his Jimei International controlling stake to Cosmic Leader Holdings. The deal happened on April 7th and involved 65.05% stake owned by Lam at a maximum consideration of HK$443.2 million.
Yan owns Cosmic Leader and has an 80% interest in the company with Chen Hong in control of the 20% remainder. Chen had 0.04% Jimei International stake. In the past, Cosmic Leader stated they plan to maintain the listing of Jimei International on the Hong Kong Stock Exchange. The goal is to continue with the existing businesses within Jimei International.
Lam is a Macau junket veteran investor who is currently involved in City of Dreams Macau junket operations via the Jimei Group, a privately held company. The group is also responsible for the Jimei Casino located next to the Grand Lapa hotel via their SJM Holdings gaming license.
Lam was affected by the gambling changes put in effect by Philippines President Rodrigo Duterte, who ordered the gaming assets of the investor to be seized in the country that was connected to the failure of the Fort IIocandian Hotel and Casino in Laoag City to pay their taxes. The investor left the country after arrests were made and has not been back. President Duterte decided to order for Lam to be arrested on economic sabotage and bribery charges but later decided that Lam could continue with local gaming operations if the necessary fines and obligations of back taxes are paid.