Landing International has announced plans to sell the prestigious Les Ambassadeurs Club in London to raise capital for completion of its Korean integrated resort Jeju Shinhwa World and pursue other opportunities in Asia.
In a filing to the Hong Kong Stock Exchange late Thursday, Landing International said it has entered into an agreement with Hong Kong businessman Paul Suen Cho Hung to purchase Jolly Champion Holding Limited – a wholly-owned subsidiary of the company and listed owner of Les Ambassadeurs Club – for a total of HK$2.5 billion. Les Ambassadeurs Club was originally purchased in December 2015 for £137 million (HK$1.4 billion).
Landing International said the sale would raise around HK$500 million in working capital after loan repayments and represent a return on investment of 30% to 35%.
Les Ambassadeurs Club, a historic VIP club located in the London suburb of Mayfair, boasts 45 gaming tables offering baccarat, blackjack, three card poker and American roulette.
In its filing, Landing International pointed to a need to direct further funds towards the completion of Jeju Shinhwa World and confirmed its intent to relocate Landing Casino from its current location within Hyatt Regency Jeju Hotel to its Korean project “as one of the core facilities within the resort.”
“If the relocation plan is successfully implemented, Landing Casino will become a casino seven times its present size (in terms of floor area) with over 150 tables and 185 slot machines (existing: 28 tables and 16 slot machines),” it said. “This will not only consolidate Jeju Shinhwa World’s position as a premium international tourist destination, but also enhance the competitiveness of Landing Casino, both locally within Jeju and internationally in the world gaming industry.”
The company added that it “is currently looking for opportunities to diversify into emerging markets in Southeast Asia which offer high growth potential and favorable investment terms,” including a proposed integrated resort similar to Jeju Shinhwa World in the Philippines.
The new owner of Les Ambassadeurs Club pending approvals, Paul Suen Cho Hung, is best known in England as the owner of Birmingham City Football Club which he purchased via his company Trillion Trophy Asia Ltd in June 2016.
He is also a highly respected businessman who has been nicknamed “The King of Penny Stocks” due to his track record of dealing with distressed stocks. The 54-year-old is Chairman of Hong Kong-listed Enviro Energy Holdings Ltd and has previously chaired a number of other Hong Kong companies including BEP International Holdings Ltd, Hailing International Holdings (formerly known as Sunlink International Holdings Ltd), Huajun Holdings Ltd and Mission Capital Holdings Ltd.
“The directors are of the view that the disposal will strengthen the group’s financial position and enhance its ability to focus on the development of Jeju Shinhwa World while remaining in a good position to invest in any opportunities with good prospects of growth and profitability,” Landing International said.
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