US tribal casino giant Mohegan Gaming & Entertainment (MGE) is set to take full ownership of its Korean integrated resort project Inspire after announcing it has reached an agreement to buy-out its local partner.
The announcement formed part of the company’s quarterly earnings announcement, with MGE stating that it had “reached an amicable agreement to purchase our South Korean partner’s stake in Project Inspire, thereby bringing MGE’s ownership in the project to 100% and furthering our diversification efforts in Asia, the world’s fastest-growing major gaming and entertainment market.”
Inspire had previously been a joint venture between MGE, South Korean chemicals firm KCC Corp and Incheon International Airport Corp, with KCC Corp having purchased a 24.5% stake in November 2015.
MGE will pay a total of US$101 million to regain full control of the project, which is expected to break ground later this year.
Phase one of MGE’s first foray onto foreign soil, scheduled for completion around 2022, is set to comprise 1,350 hotel rooms spread across three towers, an amusement park and a 215,000-square foot casino with 250 gaming tables and 1,500 slot machines. The company has previously flagged its intention to spend as much as US$5 billion on the resort by 2040.
MGE announced net revenues of US$332 million for the three months to 31 December 2018 – a 1.4% year-on-year decrease – with net income of US$28.6 million.
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