The planned acquisition of the developing company of NagaCity Walk by the NagaCorp Ltd has been delayed to the end of 2017. The 18-month delay was revealed by the Cambodian gaming operator and a possible reason is the issue of three stop-work orders by the Ministry of Land Management, Urban Planning and Construction of Cambodia.
According to the document filed by NagaCorp on Tuesday to the Hong Kong Stock Exchange, the new date for completion of the deal is 31st of December, 2017. The document reveals that one of the conditions for an agreement to be reached is the completion of the NagaCity Walk shopping complex. The original date on which the shares sale was supposed to happen was 13th of June, 2016.
NagaCorp’s filing also states that the seller had additional $29 million costs for the construction of the TSCLK Complex, which is connected to NagaCity Walk and includes hotel, retail and conference facilities. However, these costs won’t be passed on to the buyer, the document reveals.
Even though this filing didn’t offer information about the possible price of the deal, in a filing that dates back to 2011 NagaCorp mentioned that the agreement’s worth might reach $369 million. Both properties that the company plans to take over are right next to its NagaWorld Casino, located in Phnom Penh, and connect NagaWorld to the upcoming Naga2 Casino.
Reportedly, the development of the complexes had to stop because there’ve been issues related to the compliance with local cultural and technical requirements. There’s been speculation that the construction of NagaCity Walk was interfering with the Buddhist Institute of the country, which borders with the properties.
Nevertheless, the filing by the company states that the issue has already been “rectified and works recommenced subsequently.”