Silver Heritage said it had received an offer with an enterprise value of $33.9 million to buy its Nepal operations from a local business man.
Indra Bahadur Thapa, represented by I. Hugh Holmes, of Hotel Investment Partners will buy the Silver Heritage unit that holds the Nepalese assets for $20 million, the company said in a statement to the Australian Stock Exchange.
The enterprise value includes a loan of $13.9 million entered into by Nepal unit, Tiger One, with a consortium of local banks. The buyer will assume that loan.
The bid is a conditional binding offer and gives the buyer exclusivity for 90 days. In return the buyer will make a $3 million deposit into an escrow account that is non-refundable except in certain specified situations.
Silver Heritage said it has conducted a careful analysis of the offer, including the absence of a superior bid and uncertainty as to whether it can continue as a going concern, before deciding to grant exclusivity to the buyer.
Any transaction will require shareholder approval.
Silver Heritage runs The Millionaire’s Club and Casino in Kathmandu and Nepal’s first IR, the Tiger Palace Resort in Bhairahawa.
It hired Union Gaming earlier this year to help it find a buyer or strategic partners in the venture.