Macau Success Limited ("Macau Success" or "the Company"; Stock Code: 0487) today announced that on 1 October 2007, Golden Sun Profits Limited ("Golden Sun"), an indirect wholly-owned subsidiary of the Company, Maruhan Corporation ("Maruhan"), a leading company in the pachinko industry in Japan, and Macau Success signed a conditional Sale and Purchase Agreement ("S&P Agreement"). Macau Success and Maruhan also signed a Subscription Agreement on the same day.
Pursuant to the S&P Agreement, Maruhan conditionally agreed to purchase 10.2% of the entire issued share capital of World Fortune Limited ("World Fortune"), a company wholly-owned by Golden Sun, and all rights, title, interests and benefits of and in the Sale Loan, at a consideration of HK$208,501,260. World Fortune owns 49% interests in Pier 16 - Property Development Limited ("Pier 16"), a company which is principally engaged in the investment, development and operation of Ponte 16 in Macau. Moreover, Maruhan agreed that it will advance HK$116,368,740 to World Fortune as a shareholder's loan. The consideration for the shares and the shareholder's loan in relation to the S&P Agreement is determined mainly by reference to a valuation report of Ponte 16 issued by Savills (Macau) Limited, an independent professional property valuer. The market value of Ponte 16 as at 30 September 2007 was valued at HK$2,697 million based on Direct Comparison Method.
After the transaction, World Fortune will be an 89.8% owned indirect subsidiary of the Company. Maruhan will as a result hold an interest of approximately 5% in Pier 16 through World Fortune.
Pursuant to the Subscription Agreement, Maruhan will subscribe 220,000,000 new shares issued by the Company, representing approximately 10.0% of the existing issued share capital and approximately 9.1% of the enlarged share capital of the Company. The subscription price shall be equal to the closing price of the shares on the first trading day immediately after the signing of the subscription agreement with a 10% discount or HK$1.08 whichever is lower. The closing price of the shares as quoted on the Stock Exchange on 28 September 2007, being the last trading day of the shares immediately prior to the date of the Subscription Agreement, was HK$1.09 per share.
Mr. Sonny Yeung, Chairman of Macau Success, said, "We are happy to recruit Maruhan as a shareholder and strategic partner in Macau Success Limited and Ponte 16 respectively. Maruhan is a leading player in the pachinko industry in Japan. It will help us build a strong alliance for our future growth in the gaming and entertainment related businesses in the Asia-Pacific region."
Upon completion of the transactions, the Company and its subsidiaries will record an unaudited gain of approximately HK$123.7 million. The Company intends to use the net proceeds of approximately HK$207 million as general working capital and to capture potential business opportunities in the future.
"We are pleased that we have the opportunity to join forces with Maruhan. I am confident that this cooperation will accelerate the strategic growth of Macau Success and provide long-term returns for our shareholders," concluded Mr. Yeung.
About Macau Success Limited
Macau Success Limited (Stock Code: 487) is the flagship of Success Universe Group, and is currently involved in the leasing and management of the cruise and in the travel business and is actively expanding into entertainment & gaming related businesses in Macau.
The Group owns a 9-deck cruise ship, M.V. Macau Success, in Hong Kong which features a world-class casino and various spectacular entertainment facilities. In travel services, the Group offers a wide-range of one-stop travel services to customers through Travel Success Limited and Travel Success (Macau) Limited in Hong Kong and Macau respectively.
The Group is developing its flagship project - Ponte 16 in Macau in partnership with SJM - Investimentos Limitada ("SJM - Investimentos"), a wholly-owned subsidiary of Sociedade de Jogos de Macau, S.A. Owned 49% by the Group and 51% by SJM - Investimentos, Ponte 16 is a world-class integrated resort that comprises a five-star hotel, a casino (subject to the approval of Macau SAR Government), recreational facilities, a shopping arcade, a European themed promenade and major restaurants.
About Maruhan Corporation
Maruhan is a Kyoto-based company and was founded in 1957. It is one of the major players in pachinko industry in Japan with 209 stores, 118,451 pachinko and slot machines and over 9,000 staff.
Maruhan ranked 88th on the Financial Times' Non-Public 150 in 2006, with its estimated consolidated market value at around US$18 billion. It is engaged in operations management of pachinko halls, bowling alleys, golf driving ranges, amusement centers, movie theatres, food and beverage business and other leisure-related business.
For the year ended 31 March 2007, the sales of Maruhan were 1,814 billion yen and its operating profits were 32 billion yen. The total assets of Maruhan reached 203 billion yen.
The Chairman of Maruhan, Mr. Han Chang-Woo, was born 1931 in Samcheonpo-city in Korea. In 2007, Mr. Han ranked 22nd among the list of "Billionaires in the World" of Forbes. In addition to the Maruhan Group businesses, Mr. Han is very active in the public welfare sector. His incumbent titles in Japan and South Korea include:
- Administrative Director of the Han Tetsu Foundation, approved by the Ministry of Education, Culture, Sports, Science and Technology;
- Director of the Kyoto UNESCO Association;
- Administration Officer of the Kyoto Chapter United Nations Association of Japan;
- Member of the Advisory Council on Democratic and Peaceful Unification;
- Chairman of the World Federation of Korean Association of Commerce; and
- Honorary Director of the Kyungnam University in South Korea.