Shin Hwa World Seeks Shareholder Approval for Capital Restructuring to Bolster Finances

An enormous capital reorganization is planned by South Korean integrated resort operator Shin Hwa World Ltd., which wants to improve its financial standing and take advantage of potential tourism growth.

In order to obtain shareholder approval for the reorganization, which would involve share consolidation and share capital reduction to offset cumulative losses, the company has scheduled a Special General Meeting on June 13.

The owner of Jeju Shinhwa World, a casino complex in Jeju, South Korea, that is only open to foreigners, Shin Hwa World, has filed a statement with the Hong Kong Stock Exchange stating that it intends to make amendments to its bylaws.

These changes aim to strengthen the company’s overall financial health and align its financial structure with its legal requirements.

Based on regaining and growing its market share in Jeju, the corporation calls this its “top priority.” Shin Hwa World believes that this objective can be accomplished with the money raised from a proposed rights issue.

“The Rights Issue is necessary to allow the Group to utilize the additional funds raised to enhance the core business of the Group and facilitate its growth,” stated the filing.

Although the tourism sector was expected to benefit from the easing of pandemic restrictions, Shin Hwa World acknowledges that, as of the end of 2023, its commercial performance has not entirely recovered.

By making improvements to its theme park, water park, lodging, gaming area, MICE facilities, catering outlets, and other sites, the company hopes to counteract this and make Jeju Shinhwa World more appealing.

Increased marketing campaigns and investments in human resource development will be made in addition to the “hardware” upgrades, with the goal of rebranding Jeju Shinhwa World and snatching up more of the anticipated post-pandemic tourism surge.

Original Story by: Asian Gaming Brief