Lam sells majority stake in Jimei International

Junket veteran Jack Lam has sold his controlling stake in junket investor Jimei International Entertainment Group Ltd.

According to the company’s filing to the Hong Kong Stock Exchange on Wednesday, the deal took place on April 7 involving a maximum consideration of HK$443.2 million (US$57 million), or HK$1.20 per share, for Lam’s 65.04 percent majority stake.

The amount will be divided into two batches, the first HK$222 million has already been settled, according to the filing, while the remaining HK$221.2 million is to be paid on January 5, 2018.

It however, could be adjusted if Jimei International is unable to recover part of its outstanding receivables, valued at HK$227 million at the end of 2016, said the filing.

The buyer is Cosmic Leader Holdings Ltd., which is 80 percent owned by Yan Xu, and Chen Hong, who holds 20 percent.

Cosmic Leader says it plans to allow Jimei to “continue its existing businesses,” but added it will  “conduct a review on the business operations and financial position of the group for the purpose of formulating business plans and strategies for the future business development.”