Gaming solutions provider Success Dragon International Holdings Ltd. is expanding its reach, particularly in Vietnam.
Last week, the Hong Kong-listed company announced that it is acquiring a 45 percent stake in a five-star hotel—and land for further development—in the coastal city of Danang. In a filing with the Hong Kong Stock Exchange, Success Dragon said it would pay a total consideration of US$14.13 million (HKD109.65 million) for the entire issued share capital in Vabis Building Consultants and Engineering Ltd.
Vabis will hold a 45 percent stake in a holding company to be incorporated in Vietnam, which, in turn, would own the hotel and the plot of land, Success Dragon said.
The hotel, identified as the One Opera Danang Hotel, is a 24-storey, five-star hotel and commercial complex with basement car park in Vietnam’s fourth-largest city. The hotel has a total site area of 1,916 square meters and a total floor area of about 28,493.85 square meters, with an additional 3,285 square meters vacant lot which is intended for use when the hotel expands.
The deal also includes the electronic gaming machine club operated in the premises of the hotel.
Still, Success Dragon warned the acquisition “may or may not materialize” because it is conditional upon the “satisfaction of the conditions” set out in the agreement, among other things. The hotel is currently in the process of getting the necessary business certificate for the operation of electronic games business.
Late last year, Success Dragon made two deals to manage electronic gaming machines at gaming clubs in two five-star hotels in Vietnam—at the Le Meridien Hotel in Ho Chi Minh City, and at the One Opera Hotel. Under the deal, Success Dragon will exclusively manage the hotels’ electronic gaming machine clubs for an initial term of 10 years.
“The directors believe that the acquisition will enable the group to have better control and management over the provision of management services,” the company said in a statement.