AERL in deal for first SJM room

 

Asia Entertainment & Resources Ltd. reached a preliminary deal to buy the VIP gaming room on the first floor of the Le Royal Arc Casino from Wong Wing-yim. AERL would pay $20 million in cash and then pay up to $39 million more in cash and issue 1.88 million 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. The Le Royal Arc room, which has six tables and is served by around 500 agents, will be AERL’s first in a SJM casino.

AERL meanwhile reported its own rolling chip turnover fell 24 percent in the first quarter from a year earlier to $4.1 billion while net earnings declined 55 percent to $7 million as it paid higher commissions to junket agents.