Sinogreen rises on Macau target
Tuesday, July 29, 2014
Shares of Sinogreen Energy International Group (1159) rose 46 percent after “Asia’s new King of Gambling” Lam Yin Lok proposed a full acquisition of the firm and it revealed plans to enter Macau’s gaming market.
Sinogreen Energy, which trades in conductive silicon rubber keypads and associated products, will sell 325 million new shares or 65.89 percent of enlarged share capital to Lam, Creative Cosmo and New Elect at HK$0.35 each, a 94.31 percent discount to the closing price of HK$6.15 per share after adjustment.
Also, it will issue to Lam notes which can be converted to 159 million shares at HK$0.35 each. Total amount payable for the subscription of the convertible notes is HK$55.65 million.
For the rest of the shares, Lam will be required to make an unconditional mandatory cash offer, involving HK$35.24 million. Among total proceeds of HK$164.40 million, HK$96.90 million will be used to start a gambling junket business in Macau, HK$37.50 million to repay debt and HK$30 million for general operating purposes.
The company said Lam’s subscription can help diversify its business and extend it to Macau’s gaming market.
Lam is a serious force in Asia’s massive market for high rollers, and his junket operator – Jimei Group – already operates rooms in Macau’s Grand Lisboa, MGM Grand, The Venetian Macao and Wynn Macau casinos.
Further, the company reorganized its capital. Every five issued shares of HK$0.1 each will be consolidated into one consolidated share of HK$0.5, effective September 12.