Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
NAGACORP LTD.*
(Incorporated in the Cayman Islands with limited liability)
Stock code: 3918 VOLUNTARY ANNOUNCEMENT ADDING UP TO ANOTHER 150 ELECTRONIC GAMING MACHINES
The board of directors (the "Board") of NagaCorp Ltd. (the
"Company") is pleased to announce that, on 3 November 2012,
Nagaworld Limited ("Naga"), an indirect wholly-owned
subsidiary of the Company, has entered into a joint venture
agreement (the "Agreement") with Zhiyou International Co. Ltd
("Zhiyou"), an independent third party investor, pursuant to
which Zhiyou has agreed to supply and place up to
150 electronic gaming machines (the "Electronic Gaming
Machines") in an entertainment area called Saigon Palace
situated on the first floor of the gaming wing of NagaWorld
(the "Prescribed Gaming Area").
In consideration of the grant by Naga to Zhiyou to place the
Electronic Gaming Machines in the Prescribed Gaming Area,
Zhiyou shall pay to Naga an amount of USD10,000,000.00
(United States Dollars Ten Million) as a non-refundable
entrance fee within 30 days of the date of execution of the
Agreement.
Pursuant to the Agreement, Zhiyou shall be solely responsible
for all the costs of purchase of all the Electronic Gaming
Machines, while Naga shall provide the rights and the
physical space and shall be responsible for the daily
management of the Electronic Gaming Machines and the
Prescribed Gaming Area. Naga shall be entitled to 70% of the
revenue generated by the Electronic Gaming Machines while
Zhiyou shall be entitled to 30% of such revenue (the "Revenue
Sharing Ratio") effective from the Commencement Date (as
defined below). The commencement of operation of the
Electronic Gaming Machines in the Prescribed Gaming Area is
expected to be on or before 31 December 2012 (the
"Commencement Date"). The Agreement is for a term of eight
years from the Commencement Date.
- 1 -
The Board is of the view that the joint venture will benefit
the Company, that the transaction is in the ordinary course
of the Company's business and that the Agreement has been
entered into on normal commercial terms that are both fair
and reasonable and are in the interests of the Company and
the shareholders of the Company as a whole. Based on this
joint venture, the total gaming machines in NagaWorld is
expected to increase from the present number of about 1,357
to about
1,507.
Hong Kong, 5 November 2012
By Order of the Board
Chairman
As at the date of this announcement, the directors of the Company are:
Executive Directors
Tan Sri Dr Chen Lip Keong, Philip Lee Wai Tuck and Chen Yepern
Non-executive Director
Timothy Patrick McNally
Independent Non-executive Directors
Tan Sri Datuk Seri Panglima Abdul Kadir Bin Haji Sheikh Fadzir, Lim Mun Kee and Michael Lai Kai
Jin
* For identification purpose only
Please also refer to the electronic version of the same on the Company's website www.nagacorp.com, www.irasia.com and the website of The Stock Exchange of Hong Kong Limited.
- 2 -
distributed by |