Galaxy Entertainment Has Sold 20% of It’s Business to Permira
Written on October 14, 2007 by admin
Galaxy Entertainment Group has sold 20% of its business to the private equity firm Permira for about US$840 million, as it wishes to take a stake in what is now the world’s largest gambling arena.
The equity firm has said it will be paying HK$6.5 billion for a 20 percent stake in Galaxy Casino’s company, which now is building the second largest casino in the world, the GalaxyWorld Resort.
Even though competition is fierce from the likes of Wynn Resorts and Las Vegas Sands, Martin Clarke, a partner at Permira, believes that there still are abundant opportunities in the region, particularly in China.
The firm plans to set up shop in Hong Kong in the first half of 2008, Clarke said. He and fellow Permira partner Guido Paolo Gamucci will join the Galaxy board as non-executive directors.
Galaxy Entertainment, which operates the five-star Galaxy StarWorld Hotel and is developing the 2,500-room Cotai Mega Resort in the former Portuguese colony, increased revenue nearly five-fold to HK$6.332 billion in the first half of 2007.
The Hong Kong firm said Permira would buy 452 million shares from Galaxy shareholder and mid-tier property firm K.Wah International Holdings (0173.HK: Quote, Profile, Research) for HK$3.8 billion, and another 323 million new shares from Galaxy for HK$2.7 billion.
Galaxy will also sell 150 million new shares to institutional investors at HK$8.42-HK$8.82 apiece.
After the deal, Hong Kong tycoon Lui Che Woo and his family will retain 52 percent of Galaxy, which would see outstanding debt reduced by 29 percent to HK$6.5 billion.
Full details check here | Galaxy Welcomes Permira Presentation
Perspective Courtesy : Galaxy Entertainment Group
Technorati Tags: cotai, Entertainment, macau
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