Hong Kong-listed Century Entertainment International Holdings Inc. said its British Virgin Islands subsidiary has signed a conditional agreement on “business rights” for eight gaming tables at a casino in Dara Sakor, Cocong, Cambodia.
Century Entertainment changed its name from Amax International Holdings in 2019. Ng Man-sun, the company’s chairman and chief executive, is a veteran of the junket business in Macau. 파칭코
The deal will last for five years, including a consideration of HK$58 million ($7.4 million), according to a filing on Monday.
The casino belongs to a company called Ltd Ltd. The latter entered into a casino lease and operation agreement with a company called Lion King Entertainment Co Ltd, wholly owned by Mr. Ng. The deal allowed Lion King to lease the casino for a period from May 1, 2021 to April 30, 2036.
Prior to that, in October 2019, Lion King and Ng signed an agreement with Century Entertainment to grant them the right to “operate and manage” four game table groups over a five-year period beginning March 31, 2020. The table was supposed to be located in a casino at the Sunshine Bay Hotel in Sihanoukville, then run by the Lion King and Mr Ng.
The implementation of the original deal was affected by the temporary closure of all casinos in Cambodia from April 1, 2020, as part of a series of measures to prevent the spread of the COVID-19 country. In addition, Lion King and Ng eventually decided to relocate their gaming operations to Dara Sakor in 2020.
However, under the original contract, Lion King and Ng were still obliged to pay Century Entertainment a total of HK$58 million “as a result of implementing a revenue guarantee” under the 2020 contract.
Century Entertainment said in a filing on Monday that it had decided to implement revenue guarantees under the original deal on the grounds that it could not operate the agreed game table for the two years ended March 31, 2022.
According to the currently announced transaction, the consideration of HK$58 million will be settled by offsetting the payment deadline of Lion King and Mr Ng. The table will be allocated to the British Virgin Islands Company, Victor Mind Global Limited, a wholly owned company of Century Entertainment.
Eight game tables to be allocated under the “New Framework Agreement” have been in operation since November 2021, according to a filing on Monday. They are located on the mass floor of the casino and are exclusively for baccarat.
SAYS UNaudited TOTAL REVENUE AND NET PROFIT FROM NOVEMBER 2021 TO MARCH 2022 WAS ABOUT HK$10.4 MILLION AND HK$9.2 MILLION, respectively, whereas unaudited net income amounted to ABOUT HK$6.0 MILLION FOR THE PERIOD. The document defined table net income as “total revenue minus game revenue and food and beverage charges.”
Century Entertainment itself recorded no revenue and a loss of about HK$5.8 million in the six months to Sept. 30, according to an interim report submitted on Dec. 21.