Macau’s Suncity again defers Hoiana casino-resort stake purchase
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Hong Kong’s Suncity Group Holdings has twice delayed a deal in the last two months to acquire 34 percent of a casino-resort in Quang Nam Province.
In a statement to the Hong Kong Stock Exchange, the Macau casino operator and investor said it is waiting for the joint venture between VinaCapital and Hong Kong’s Chow Tai Fook to obtain approval from a Vietnamese bank, which has given a loan to the developers of Hoiana.
So it is postponing completion of the deal, worth $76.8 million, until August 31 this year, the firm said.
“It is expected that the bank consent will be obtained on or before August 31, 2018. Save for the condition relating to the bank consent, all other conditions have been fulfilled.”
In June Suncity had said difficulties in acquiring land for the project caused it to put off the deal until July 31.
VinaCapital and Chow Tai Fook have since acquired the 163 hectares required for phase 1 of the development.
Suncity announced plans to acquire the stake in the casino and resort in July last year.
The $4 billion project was initially planned by VinaCapital and Malaysia’s Genting Group, but in 2012 the latter pulled out, and in 2015 Chow Tai Fook came on board.
Hoiana is one of eight casinos to be licensed in Vietnam now.
To be built in seven phases it will have a casino with 140 tables and around 1,000 slot machines, guest rooms and a golf course.
Questions & Answers
Q.What is the primary reason Suncity Group Holdings has deferred its stake purchase this time?
What is the primary reason Suncity Group Holdings has deferred its stake purchase this time?
Suncity is waiting for the joint venture between VinaCapital and Chow Tai Fook to secure approval from a Vietnamese bank. This bank has provided a loan to the Hoiana developers, and its consent is needed for the deal to proceed.
Q.What was the previous reason Suncity gave for delaying the deal in June?
What was the previous reason Suncity gave for delaying the deal in June?
In June, Suncity stated that difficulties in acquiring land for the project were causing the delay. However, VinaCapital and Chow Tai Fook have since acquired the 163 hectares needed for the first phase.
Q.Which companies are currently involved in the Hoiana project's joint venture?
Which companies are currently involved in the Hoiana project's joint venture?
The joint venture developing the Hoiana casino-resort is between VinaCapital and Hong Kong’s Chow Tai Fook. They are the current developers waiting for bank approval for Suncity's stake purchase.
Q.What facilities will the Hoiana casino-resort include upon completion?
What facilities will the Hoiana casino-resort include upon completion?
The Hoiana project is planned to feature a casino with 140 tables and approximately 1,000 slot machines. It will also offer guest rooms and a golf course, built over seven phases.
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