Genting Singapore Goes to Develop Resort World Jeju
Asian casino operator Genting Singapore has reportedly signed a deal to sell their profits in the upcoming development for South Korea’s Jeju Island so that they can focus more on Singapore’s business while saving resources for potential future opportunities in Japan.
Genting Singapore subsidiary Algona Private Limited will sell 100% of its stake in Callisto Business Limited to Chinese property developer Landing International Development Limited for a total of $420 million, according to a report from Asia Gaming Brief citing company documents.
Callisto Business Co., Ltd. has a 50% stake in Landing Jeju Development Co., Ltd., which is developing a $2 billion resort world Jeju integrated resort in Jeju Island in partnership with Landing International Development Co., Ltd. through Happy Bay Private Limited.
“The group is comfortable in delivering healthy results at Resorts World Sentosa,” a document from Resorts World Singapore reads. “The group has described changes to focus on various market segments and has been developing strategies to improve delivery to rich target markets. These strategies, including re-locating the group’s brand and developing new facilities, will help it grow within its home base in the near future.”
Genting Singapore declared that the contract represents a “modest profit” compared to its total investment in Calisto Business Limited of $380.76 million and expects to complete sales during the first quarter and receive full consideration .
“Japan’s recent news reports are encouraging with regard to progress in the process to discuss and pass the integrated resort promotion bill,” the Genting Singapore document said. “The Japanese group is optimistic that the bill will be enacted in the near future. In this case, considerable resources will have to be put in place to select the Japanese group as a strong candidate for the bidding process. This opportunity is of significant value to the growth of the Japanese group.”
GENTING SINGAPORE further said that as part of the refocus, a subsidiary of GENTING INTERNATIONAL RESOURCES MANAGEMENT LIMITED has entered into an agreement to sell a 50% stake in Autumnglow Private Limited to Landing International Development Limited for $0.70.
“Dispositions are in the best interests of the company’s shareholders in the short and medium term,” the Genting Singapore filing said. “Dispositions are also of high value to the company’s shareholders in the short term.”