In Macau and the firm behind the $1.6 billion, The 13 hotel, has reportedly announced the signing of an agreement that could eventually see it offload a 60% stake in the luxury venue in exchange for a consideration worth a little over $153.18 million.

According to a report from GGRAsia, Hong Kong-listed South Shore Holdings Limited made the revelation via an official Monday filing and additionally detailed that the arrangement is all part of a non-binding deal that it initially worked out with an associate of unnamed existing major shareholder in January.

Unfulfilled plans:

South Shore Holdings Limited began welcoming guests to The 13’s 200 opulent rooms almost two years ago and had originally planned to add a casino to the iconic property located along the border between Macau’s Coloane and Cotai Strip districts. But, the firm never agreed a deal with one of the city’s ‘big six’ casino license holders while the venue recently recorded an annual loss of almost $746.81 million, which was significantly more than the $200.42 million it chalked up for the previous twelve-month period, primarily due to aggregate impairment costs worth around $599.96 million.

Debt disbursement:

GGRAsia reported that trading in South Shore’s shares resumed on Wednesday following an over one-month suspension while the firm used the filing to explain that it intends to use any proceeds from the proposed sale to reduce its overall debt. It moreover declared that the envisioned deal ‘may constitute a very substantial disposal and connected transaction’ although it has yet to enter ‘into any definitive agreement in relation to the potential disposal and is still in negotiations with prospective investors.

Reportedly read the filing from South Shore…

“Subject to contract, the company envisages that the transaction could extend to a disposal of a 60% interest in a subsidiary of the company that beneficially owns The 13 hotel together with its respective bank borrowings of approximately $375.52 million and the interest accrued thereon for a consideration of up to $153.19 million.”

Casino cancellation:

South Shore Holdings, which was previously known as The 13 Holdings Limited, used a second Monday filing to state that the most recent impairment costs associated with The 13 came as a result of its abandonment of the previously-announced plan to bring a casino to the venue.

A second filing read…

“Given that no formal agreement has been entered into with any concessionaire or sub-concessionaire as operator, in respect of any gaming operations in The 13, a significant reduction of anticipated occupancy and room rates as well as forecast revenues has been made in our business plans taking account of current market conditions.”