Asian casino operator Landing International Development Limited has reportedly announced the inking of a deal that is to see China Yueda Group Holdings Limited purchase its Stepwide Developments subsidiary for approximately $15.48 million.
According to a report from Inside Asian Gaming, the Hong Kong-listed firm used an official Monday filing to detail that the agreement will encompass the subordinate’s own Jumbo Step and Landing Korea affiliates as well as land on South Korea’s Jeju Island that had hosted a staff training center for the nearby Jeju Shinhwa World resort facility.
Landing International Development Limited reportedly clarified that the South Korea transaction comes after its Stepwide Developments arm posted a drop of almost 90% year-on-year in net annual revenues to about $193,540 with its subsequent aggregate loss widening by over 800% to some $21.96 million.
Inside Asian Gaming reported that Landing International opened the foreigner-only casino within its 617.7-acre Jeju Shinhwa World development in February of 2018 and had utilized the aforementioned Jeju Island instruction facility to prepare employees for working within this 52,201 sq ft gambling-friendly space. However, the company’s filing purportedly proclaimed that this arrangement has become increasingly unnecessary following its subsequent construction of a comparable venue ‘in closer proximity to its core businesses and facilities.’
Reportedly read the filing from Landing Int’l…
“Hence, the training activities of the group have been conducted in a more efficient and cost-effective manner in another location thereafter and the utilization of the lands and buildings owned by Landing Korea had decreased substantially in 2019.”
For its part and GGRAsia used its own report to explain that the understanding is to also involve China Yueda Group Holdings Limited’s purchase of a loan worth some $51.05 million that Stepwide Developments owes to Landing International Development Limited. Nevertheless, the casino operator purportedly furthermore pronounced that it expects to record an overall loss on the entire deal of around $929,000 but will use any possible resultant proceeds to enrich its general working capital and back ‘potential projects if and when opportunities arise.’
Landing International Development Limited brought in almost $17.69 million last month via a share placement scheme and reportedly advised investors that the disposal of Stepwide Developments will additionally help to ‘enhance efficiency and reduce costs’ associated with ‘maintaining the lands and buildings owned by Landing Korea.’
The casino firm’s filing reportedly read…
“The group considers that the sale proceeds from the disposal may strengthen the cash position of the group and the disposal may also enable the group to better utilize and allocate its internal resources whilst the disposal does not result in material impact on its existing business operation.”