Hong Kong-listed Paradise Entertainment Ltd. has entered into a letter of intent for the proposed acquisition of two wholly-owned subsidiaries of China Star Entertainment Ltd.
The subsidiaries, Most Famous Enterprises Ltd. and Charming Era Investment Ltd. are the owners and operators of Hotel Lan Kwai Fong in Macau as well as residential units which are currently used as staff quarters.
Hotel Lan Kwai Fong Macau presents a total of 209 guest rooms, casino situated on the ground, first and 18th floors, restaurants, a flower shop, retail shops and a spa centre.
Total price for the proposed acquisition will be HK$2.4 billion, according to the Letter of Intent, which will be subject to adjustment as detailed in a formal sale and purchase agreement.
In a filing to the Hong Kong Stock Exchange on Thursday, Paradise Entertainment said the acquisition represents a development of the Group’s existing casino management service business.
“In addition, having its own hotel business will enable the Group to directly provide hospitality services to its patrons (instead of relying on hospitality services provided by other hotels) to support the Group’s existing casino management service business,” said the company in its filing.