Former Legislative Assembly member and head of the Golden Dragon group Chan Meng Kam has been revealed as the buyer of Hotel Lan Kwai Fong.
In a filing to the Hong Kong Stock Exchange overnight, current owner China Star Entertainment Limited announced that it has entered into a conditional purchase and sale agreement with Mr Chan that will see him acquire all sale shares and shareholder loans of China Star subsidiaries Charming Era, Exceptional Gain and Most Famous – owners of Hotel Lan Kwai Fong, Casino Lan Kwai Fong and 18 residential units in Macau being used as staff quarters – for HK$2 billion.
The deal will also see Mr Chan acquire Charm Faith, Classic Management, Best Joyful, Noble Million and Merit Noble, a group of companies held by China Star’s subsidiaries. Classic Management operates Casino Lan Kwai Fong via a service and site license agreement with license holder SJM.
News of Mr Chan’s intention to buy comes three-and-a-half months after Paradise Entertainment entered into its own agreement with China Star to acquire its subsidiaries for a price of HK$2.38 billion. An exclusivity agreement regarding negotiations expired on 30 September 2017 after the two parties failed to agree to final terms.
The agreement with Mr Chan represents a HK$380 million reduction in price on that originally agreed with Paradise Entertainment.
It was only last month, on 27 September, that Mr Chan’s Golden Dragon group launched its new Royal Dragon Casino in Macau, which opened with 20 gaming tables relocated from nearby Oceanus – also under license from SJM. He also controls Golden Dragon Casino and Casino Taipa Square, the latter of which operates under Melco Resorts’ license.
Casino Lan Kwai Fong currently boasts 84 gaming tables and 65 slot machines over three floors while the hotel includes 209 guest rooms, a flower shop, retail shop and spa center.
China Star Entertainment said it expects to record an estimated gain of disposal of HK$648 million, with the deal to be completed no later than 30 April 2018.
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