AERL completes Le Royal Arc VIP room deal

 

VIP gaming room investor Asia Entertainment & Resources Ltd. completed its acquisition of the VIP room on the first floor of the Le Royal Arc Casino. The purchase gives AERL its fifth VIP room and 40 tables in total. It is also its first in a casino operated by SJM Holdings Ltd. Nasdaq-listed AERL had earlier described the assets to be acquired as “all of the outstanding interests and operations of the VIP gaming room” and  it was to pay the operator Wong Wing-yim $20 million in cash and then pay up to $39 million more in cash and 1.88 million in shares if Wong achieves a rolling chip turnover of at least $2.5 billion in each of the next three years, with more incentives if he exceeds the target. AERL did not indicate if those terms were adjusted in the final deal. Separately, the company said it had raised net proceeds of $61.4 million from a rights offering to pay off debts owed to certain shareholders in preparation for its planned listing in Hong Kong. The company also said its rolling chip turnover for June was $1.33 billion, down 3 percent from a year earlier because of the company’s “tightening of credit to agents due to its conservative view on the Chinese economy”.