Tuesday, October 17, 2006

HWGB close casino in Poipet due to loss

Oct 17, 2006
HWGB ceases casino ops

The Edge Daily (Malaysia)

Ho Wah Genting Bhd (HWGB) has ceased the operations of its three-year-old gaming operations due to the lack of patronage to the casino-cum-hotel in Poipet, Cambodia, as well as competition from other casino operators in the same area.

In a statement on Oct 17, HWGB announced the cessation of the loss-making business operations of its 60% owned subsidiary Ho Wah Genting Casino Resorts Co Ltd (HWG Casino), with effect from Oct 16.

HWG Casino started operations on April 11, 2003. HWGB said HWG Casino had been suffering losses for the past two years.

It was of the view that it was not viable to continue operating the casino-cum-hotel, which required constant cash flow and support from the holding company.

As the group has ventured into other business ventures, it makes commercial sense for the board of HWGB to concentrate on its new businesses," it said.

HWGB said HWG Casino would surrender the casino-cum-hotel building to the landlord, Anco Brothers Co Ltd and would sell the assets and settle its debts in due course.

It said there would not be any significant financial impact on the group's results as the losses had been accounted for in the accounts of the holding company progressively upon consolidation.

No comments: