Macau-based junket operator SunCity Group has proposed to acquire 34pc stake in Vietnam’s $4bn Nam Hoi An casino resort for a total consideration of HK$600m ($76.8m). Goal Summit Ltd, a wholly owned subsidiary of SunCity Group, will buy the entire equity interest in Star Admiral Ltd, which indirectly owns 34 per cent of the resort’s development firm.
The seller is Suncity International Holdings, owned by Alvin Chau, the chairman of SunCity Group.
Hoi An South is an under-construction project integrating a casino, a resort, a golf course and residential areas, jointly developed by SunCity, Vietnam-based asset management company VinaCapital and Gold Yield Enterprises (GYE), a subsidiary of Hong Kong-based conglomerate Chow Tai Fook. Upon completion of the transaction, Star Admiral will become an indirect wholly-owned subsidiary of the Hong Kong-listed junket group, while GYE and VinaCapital’s affiliates will be joint ventures of the group.
GYE holds 68.09pc of the project’s development company, Hoi An South Development, while the remaining shares are owned by VinaCapital. SunCity said, approximately $89m is being disbursed to build the first phase of the resort, while the $4bn asset will comprise of seven phases. The first one, estimated to cost some $650m, is expected to be completed by mid-2019.
“Through the acquisition, the group could acquire interests in the project and thereby tap into the promising tourism sector, as well as the potentially expanding gaming market, in Vietnam, in line with the group’s objective to develop tourism-related business in the country,” SunCity explained in the filing.