Wednesday, May 02, 2007

Macau Golden Resorts Group bets big on CamboSix. Cambodian gov't gets chump change from CamboSix license

Wednesday, May 02, 2007
Macau firm bets big on Cambodia bookmaker

Staff reporter
The Standard (Hong Kong)

Golden Resorts Group (1031), the Hong Kong-listed operator of hotel- casinos in Macau, is making its first foray into the bookmaking business in Cambodia.

The group said in a statement to the Hong Kong stock exchange it has signed a memorandum of understanding in respect to the possible acquisition of a 49 percent interest in Cambo Six for HK$147 million.

Cambo Six holds a license granted by the local government to operate an exclusive bookmaking business in Cambodia for football matches. The license is valid for four years commencing from February 1, 2007, to January 31, 2011.

Golden Resorts will pay HK$63 million in cash for the acquisition, while the remaining HK$84 million will be satisfied by issuing shares at HK$0.60 per share.

The company's stock was suspended from trading Monday, pending the possible acquisition announcement, and will resume trading today. The shares last traded at HK$0.642.

The final terms of the formal agreement is expected to be entered into by May 31, the company said.

Pollyanna Chu Yuet-wah, chief executive of Golden Resorts, said the acquisition will put the company's investment plan in the Asia-Pacific region into practice.

"The economy in Asia is booming, thus we are optimistic that the gaming industry in the region has a promising outlook," Chu said.

"Our experience in Macau would bring us insights to our development in other countries. In future, we will not only seek opportunities to further expand our business in Macau, but also in other parts in the Asia-Pacific region."

Golden Resorts owns and operates two four-star hotels with gaming facilities, namely the Casa Real Hotel and Grandview Hotel in Macau. The facilities offer a combined 806 hotel rooms, 124 gaming tables, 11 VIP rooms and 77 slot machines.

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