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Galaxy to tighten Macau hold with Grand Waldo buy

Cathy Wu

Monday, May 06, 2013

Casino operator Galaxy Entertainment (0027) will buy the Grand Waldo hotel complex in Macau for HK$3.25 billion.

Selling the Cotai Strip hotel complex to Galaxy will be units of Get Nice Holdings (0064), according to statements from the two companies.

A casino within the Grand Waldo complex is already run by Galaxy, holder of one of Macau's six gaming licenses.

Grand Waldo hotel has 316 guest rooms, 23 gaming tables and 15 VIP gaming tables.

Opened in 2006, the 1.4 million square foot complex also has a shopping outlet and spa under its own brand.

Twenty-six vehicles owned by the hotel will also be acquired in the deal.

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Get Nice said the business being disposed has had an "unsatisfactory" operating result - incurring a net loss of HK$332 million for the year ended March 31, 2012.

It said the consideration exceeds the valuation of the property by HK$250 million, representing a premium of 8.3 percent.

Get Nice is estimated to make a pre- tax gain of HK$311 million on the disposal of the property.

The net proceeds of the deal are estimated at HK$1.79 billion, after deducting disposal expenses, repayment of mortgage loans, shareholders' loan and dividends.

Get Nice has agreed to stop hotel and casino operations in Macau in order to avoid competition

The firm said it will use HK$890 million of the net proceeds for development of new investment opportunities and the remainder will be used for expanding existing financial businesses.

Honeylink Agents, which owns a 29.99 percent stake in Get Nice, has agreed to vote in favor of the deal at the upcoming extraordinary general meeting. Honeylink is owned by Get Nice chairman Hung Hon-man.


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