Century Entertainment terminates Cambodian gaming table acquisition deal

Century Entertainment International Holdings Ltd, a Hong Kong-traded company, has officially canceled its contract to acquire gaming tables in Cambodia because its subsidiaries have not met the agreed-upon requirements by December 31, 2023.

Eight gaming tables in a casino in Dara Sakor, Koh Kong Province, Cambodia, were part of the deal.

The casino in question is operated by LongBay Entertainment Co. Ltd., which entered into a casino leasing and operating arrangement with Lion King Entertainment Co Ltd., according to the first announcement issued in February of the previous year. Ng Man Sun, the chairman of Century Entertainment, owns all of Lion King. According to the original contract, Lion King would pay HKD 58 million ($7.4 million) to lease the casino for the period of May 1, 2021, to April 30, 2036.

In a recent filing, Century Entertainment said that certain standards were not fulfilled, which led to the termination. It said that in order to ensure proper compilation from underlying books and records, auditors or reporting accountants must evaluate a profit and loss statement and value for the three previous fiscal years pertaining to the New Gaming Table Business Rights. A few numbers were provided by Lion King, including net gaming income, gaming tax, and food and beverage charges; however, certain operating costs were projected and no cost allocation was generated.

The terms of the termination agreement, Century Entertainment emphasized, are “fair and reasonable” and serve the company’s and its shareholders’ best interests. The group’s financial situation and activities are unaffected by the termination. The company also revealed that it is still in negotiations with LongBay Entertainment Co., Ltd. to lease and operate a casino for a VIP room in Long Bay, Dara Sakor, Cambodia. This would allow the company to undertake gaming activities under the license that LongBay Entertainment Co., Ltd. has granted.

Original story by: Asia Gaming Brief