Northern Cyprus – Cypriot casino deal stalls for AmaxBy Phil - 16 October 2013
Hong Kong-listed Amax Holdings has said that its attempts to buy into a casino development in the Turkish Republic of Northern Cyprus have stalled as the parties ‘could not compromise on finalising the terms of a formal sale and purchase agreement.’
Amax is looking to diversify its junket and casino operation by taking a ten per cent share in the Lara Park Hotel in Girne, Northern Cyprus and a 51per cent stake in Samoa-born Southern Ruby, who has the rights to build and operate a casino at hotel. It said the deal was now ‘subject to further negotiation’ and that it was extending the deadline on the deal to November 30. The casino was closed earlier in the year after the operators failed to finance gaming losses and the hotel proprietors cancelled the contract to the luxury casino in the 5-star hotel premises. An external auditor concerned with the company’s annual report for last year said the accounts ‘cast significant doubt about the group’s ability to continue as a going concern.’
Amax meanwhile reported losses of approximately HK$39.38m, over US$5m, for the 12-month period ending March 2013.
Ng Man Sun, Chairman and Chief Executive Officer of Amax said: “The proposed acquisition is aimed to diversify our income stream and to expand our gaming business. We are positive about the gaming industry in TRNC. Going forward, we will continue to seek more opportunities to further develop our business.”
Amax already owns 49.9 per cent of Greek Mythology Casino, located in Tai Pa, Macau and holds interest in gaming operations such as gaming tables and slots. It recently completed a majority interest in a lottery related business located in Guangxi, China, representing a major step in Amax’s foray into China’s fast-growing lottery business.