Success Dragon backs out from Vietnamese hotel share acquisition

TAGs: Success Dragon, Vietnam

Success Dragon backs out from Vietnamese hotel share acquisitionGaming solutions provider Success Dragon Holdings Ltd. has permanently shelved its plan to expand its operations in Vietnam through a 45-percent share acquisition of a five-star hotel in the Southeast Asian nation.

In a disclosure to the HongKong Stock Exchange, Success Dragon announced that it is terminating its plan to acquire the entire issued share capital in Vabis Building Consultants and Engineering Ltd, which would have given it a 45-percent stake in a company owning One Opera Danang Hotel – a five-star hotel project – and a plot of land in Danang, Vietnam.

The terminated deal also includes the electronic gaming machine club operated in the premises of the hotel.

The reason for the cancellation of the project, according to the HongKong-listed company, was due to the fact that the vendor – My Ngoc Nguyen – had “difficulty in obtaining the requisite consent for the implementation of the [asset] reorganization.”

“The board considers that the termination of the Acquisition will not have any material adverse impact on the operation, business nor financial position of the Group,” the company stated in the filing.

Last March, 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.

Success Dragon changes mind on placing HK$220M convertible bonds

In another disclosure to the HongKong Stock Exchange, Success Dragon will no longer push through with its plans to place convertible bonds amounting to a maximum of HK$220 million (US$27.5 million).

The termination is due to the fact that the company and the placing agents “are unable to agree on some of the key commercial terms of the placing,” according to the company

Success Dragon announced on June 2 that it had agreed to the issue, while the placing agents had conditionally agreed to subscribe to the convertible bonds based on a conversion price of HK$0.83 per conversion share.


views and opinions expressed are those of the author and do not necessarily reflect those of