Genting Hong Kong seems to spend its time overcoming all the impediments on the way of their goals. The effect of the pandemic has hurt the company so intensely that Lim Lok Thay, the company’s chairman has been using his share from the total stakes to keep activities and things moving. Other than the company’s cruise ship business, the Genting HK subsidiary was on a project to establish a casino resort on the land of Macau. However, the company let go of about half of its total position last November to earn some cash. Now, it is planning to sell the rest to the same buyer. It is choosing the end of this year to make this selling.
Yesterday, the company gave a notion about the transaction being placed on December 2, 2020. The 50% of the stake was handed over to White Supreme Corporation. A Call option has been included in that selling compact that obligated the White Supreme Corp. to agree to buy the rest 50% when the time would come.
Critical Time for Gaming Entities
Genting HK has managed to provide itself a little breathing break by selling that portion of the share, at least for a while. The Macau casino resort project made the company spend about $136.7 million since its beginning. To bring life to the casino and make it visitable, the company still needs to invest over $350 million. However, due to several factors like a loss of around $304.7 million on a sale loan assignment, and consolidation of the total liability rate of the target group of around the US $51.8 million, the share sale has cost Genting HK like $156.7 million.
Genting HK is not the only entity that has been suffering from the terrific effect of Covid-19. Studio City International’s (SCI) subsidiary institution Studio City Co. has been struggling to find a way to produce money by the upcoming year to mitigate its liquidity necessity. SCI is regulated by Melco Resorts and Entertainment and it’s coping with its own problems.
Studio City has hopefully found out some solutions to resolve its financial issues.