Dedicates to Focus on Macau Gaming Businesses
HONG KONG, May 9 /Xinhua-PRNewswire/ -- Emperor Entertainment Hotel Limited ("the Group") (Stock Code: 296) today announced the Group has entered into a Sale and Purchase Agreement to dispose of its cruiser liner and cruise operations. The consideration for the disposal will be approximately HK$127 million.
Ms. Vanessa Fan, Executive Director of the Group, said: "The disposal of the cruise liner business allows us an opportunity to re-allocate our financial resources and management efforts, focusing on the operation of the Grand Emperor Hotel in Macau, a market with robust growth and potential."
The cruise liner, Golden Princess, was acquired by the Group in February 2005. The 12,704-tonne ship offers entertainment, gaming and accommodation services to 570 guests. The operation of the Cruise Liner is primarily on the high seas near but outside Hong Kong.
The Golden Princess and its related business will be sold to Hong Kong-listed Fortuna International Holdings (an independent third party of the Group) for approximately HK$126.87 million, which represents the net asset value of the cruise liner.
Although the cruise liner operation brings stable income to the Group, the Group believes it is more worthwhile to focus its resources and efforts on the Macau hotel operation, which recorded satisfactory performance since its opening in January 2006.
Grand Emperor Hotel, located on the Macau peninsula, provides gaming and accommodation services with its 291 hotel rooms, 348 slot machines and capacity of 65 tables in its mass-market gaming concourse under licence with SJM.
On May 1, 2007, Grand Emperor Hotel launched a new VIP hall with four tables targeting high-rollers, bringing the total number of VIP gaming halls to eight. The Group now self-operates two VIP halls (10 tables in total), an area where the Group possesses substantial experience and expertise.
The consideration of the disposal will be paid to the Group in cash upon completion of the agreement. It is expected the disposal will have minimal impact on the net asset position of the Group.
The Sale and Purchase Agreement constitutes a major transaction for the Group and therefore is subject to the approval of shareholders at a special general meeting.
Ms. Vanessa Fan concluded: "Riding on the increasing expansion in Macau, the world's No 1 gaming market, we are optimistic that our gaming businesses will keep growing and in turn create the best interests and opportunities for our shareholders."
Emperor Entertainment Hotel Limited will resume trading on 10 May, 2007 (Thursday).
About Emperor Entertainment Hotel Limited
Emperor Entertainment Hotel Limited is the gaming business platform of its parent company Emperor International Holdings Limited (HKSE code: 163). The company has a hotel project in Macau, offering VIP gaming and entertainment services, food and beverage as well as retail outlets. The company also has a development project for a prime shopping arcade in Shanghai, PRC and continues to look for potential business opportunities worldwide.
For Enquiries:
Emperor Entertainment Hotel Limited
Sidney Luk Email: sidneyluk@emperor.com.hk
Tel: +852 2835 6715 / +852 9226 4424
Fax: +852 2893 5327
Website: www.emp296.com
