Former Macau junket investor Rich Goldman Holdings says it has extended by three months the deadline to fulfill all conditions under a joint venture agreement to set up a new VIP room at Solaire Resort & Casino in the Philippines.
Under the terms of the original agreement, signed in April, the joint venture was to be immediately terminated if all conditions could not be met by 26 July 2020. In a Tuesday filing, Rich Goldman said that deadline had proven impossible to meet due to ongoing COVID-19 lockdown measures in the Philippines, with the parties instead agreeing to extend the long stop date by a further three months to 26 October 2020.
As previously reported by IAG, the joint venture – to be 51% owned by Rich Goldman subsidiary Prime Jade Enterprises Ltd and 49% by an independent third party called Great Happy Century Ltd – will see the two subscribe for 510 shares and 490 shares, in the amount of HK$510,000 and HK$490,000, respectively.
Under the terms of the agreement, the joint venture firm will receive 1% of rolling turnover generated from live gaming tables in the new junket room each calendar month. The room itself will be operated by Mr Tam Ka Wo, the sole owner of Great Happy, who will sign an agreement of his own with Bloomberry Resorts and Hotels, Inc, the entity that operates Solaire.
Rich Goldman Holdings revealed in March that it had parted ways with its sole remaining junket operator in Macau, Hoi Long Sociedade Unipessoal Limitada, which until recently ran eight VIP tables at SJM’s Grand Lisboa.
“The Group has been actively exploring possibilities to expand its gaming business and identifying new junket operators for its gaming business,” Rich Goldman said at the time.
“Given the long-term business relationship between the Group and the Guarantor (Tam Ka Wo) as well as the satisfactory returns from the Group’s collaboration with Hoi Long in Macau during the term of their collaboration, the Directors are of the view that the formation of the joint venture company in the Philippines with Great Happy represents a strategic move for the Group to diversify its gaming business into the Philippines.”
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