Macau-based junket operator Suncity Group has reportedly announced that it is set to spend approximately $76.8 million in order to acquire a significant stake in an under-construction casino resort in Vietnam.
According to reports from Asia Gaming Brief and GGRAsia, the deal will see the Hong Kong-listed company’s Goal Summit Limited subsidiary purchase the entire issued share capital, associated obligations, liabilities and debts of Star Admiral Limited, which holds a 34% stake in Hoi An South Development Limited Project Company.
Completion of the deal will reportedly give Suncity Goup a 34% stake in an $89 million beach-front casino resort currently being built by Hoi An South Development Limited Project Company near the city of Hoi An. Expected to be completed in mid-2019, this scheme in Quang Nam Province near the nation’s third largest city of Da Nang is due to encompass a hotel, golf course and condominiums as well as a casino offering some 140 gaming tables.
Suncity Group reportedly explained that the purchase is to be financed via a $38.8 million promissory note while the remaining $38 million is due to be raised via the issuance of a convertible bond. It declared that the deal will help it to expand its presence across south-east Asia and is in line with its corporate objective of helping to develop tourism-related businesses in Vietnam.
“The group is confident on the outlook [of] 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,” read a Thursday statement from Suncity Group.