Hong Kong-listed Lippo Limited has announced on Friday it has exited a joint casino project in Incheon, South Korea, according to a filing to the Hong Kong Stock Exchange.
The company says it disposed of its entire interest in the issued shares of LOCZ Holdings to a new JV – a joint venture company formed by Caesars Entertainment Corp and Chinese Guangzhou R&F Properties Co., Limited, for an aggregate consideration of US$12.2 million.
Lippo first announced it was considering withdrawing from its proposed joint venture with the US gaming company in March 2016.
Lippo said there is a number of uncertainties relating to the project, including the uncertainty as to whether a final license would be granted and the terms of the grant.
Lippo said the exit was beneficial for the group as it will release the capital which had been tied up in the Project over the past few years for use for general corporate purposes of the Group.
It came as “issues with regard to the Land SPA could not be resolved despite subsequent negotiations among members of the Consortium,” explained Lippo in its filing.
“Additionally, members of the Consortium were unable to agree and finalise the investment in the Project, the form that the Company’s investment should take, and the terms of the definitive agreements governing the Project,” it added.