Hong Kong-listed Landing International Development Limited, which establishes a foreigner-only casino and resort (pictured) on Korea’s Jeju Island, will raise HK$138.8 million ($107.9 million), or HK$138.5 million after expenses, through subscription shares, combined with capital expenditures on existing facilities at Jeju Shinhwa World and the cost of new hotels there.
The company said it expects tourism to recover later this year as the worst effects of the COVID-19 pandemic ease.
Under the deal, Landing International Limited, a private company controlled by Yang Jihui, parent company and businessman of Landing International Development, will reduce its stake in the latter company by 7.01% points to 35.06%. Yang is also the chairman of a Hong Kong-listed public company.
About HK$47.5 million of the proceeds from the stock subscription will be spent on the maintenance, renovation and upgrade of existing facilities in Jeju Shinhwa World.
Those costs are likely to come “in preparation for a post-pandemic rebound in the tourism industry from the second half of 2021,” Landing International said in a filing with the Hong Kong Stock Exchange on Friday.
In common with many parts of the Asia-Pacific, South Korea is currently restricting foreigners from entering the country due to COVID-19 measures.
The number of casino visits fell 71.3% in 2020 compared to the previous year. All but one stadium open to foreigners is open to foreigners.
The remaining HK$91 million in cash for stock subscriptions, disclosed on Friday, will be used to fund “preliminary development costs for the construction of hotels in Jeju Shinhwa World,” which is expected to take place in the second half of 2021.
The remaining balance will be used to pay interest expenses and general working capital, the company said.
The subscribers are Wells Millennium Ltd, a British Virgin Islands company, and the guarantor is Pauline Lam, who has been described as “Chinese nationality”.
Landing International Development has filed to list its shares on the Hong Kong exchange and trade on the Hong Kong exchange.
Landing International Development said in April that its full-year net loss in 2020 was about HK$2.12 billion, slightly lower than its 2019 net loss of HK$2.13 billion.
BY: 바카라사이트 순위