Fortuna unveiled its aims on the Grand Hotel, a vintage property near the city's central square that closed five years ago.

The Hong Kong firm will invest in a venture that began renovating the hotel in December but Fortuna will not contribute to the upgrade costs.

The renovated New Grand Hotel will have 50 guest rooms and include a casino with 14 public gaming tables and six tables in a VIP room.

Fortuna said the price of its stake in the venture represents a 40 percent discount to its independently appraised value to reflect the chance of other hotels and casinos opening in the immediate area and the possibility that Macau might grant more casino operating concessions.

With the news that Macau gambling assets are selling at a discount, shareholders dumped their Fortuna holdings, sending the stock price down 16.7 percent to 3.5 cents.

Trading in the shares had been suspended since January 20. Fortuna's shares traded at a penny a piece shortly before the company first mentioned its interest in Macau. The price peaked at eight cents before the company announced delays in closing the deal last month.

The New Grand venture acquired rights to run the property for six years last April, but Fortuna said New Grand does not yet have an operating license or a deal with a casino operator, though it expects 40 percent of casino profits.

The 30 percent stake in New Grand that Fortuna is acquiring represents half of Lam Po-ying's interest in the project. Fortuna will pay Lam a mix of shares and cash to be determined later, but the deal stands to make her the second-biggest shareholder in Fortuna. Macau legislator Vitor Cheung indirectly holds a 30 percent interest in the project. Ho Yen-bing holds a 10 percent stake and Fortuna said he will serve under contract ``as the manager responsible for the promotion and marketing of the casino in the hotel to local customers and overseas tourists.''

Fortuna said the Grand Hotel is included in the area being redeveloped for the Ponte 16 project, but Marco Lee, executive director of Ponte 16 shareholder Macau Success, said Wednesday he was unaware of the plan to put a casino in the hotel.

Speaking after Macau Success' annual shareholder meeting, Lee said he expects Ponte 16 will open its own casino in summer 2006. The casino will be followed by a shopping area with a historical theme and a 270-room luxury hotel. Casino operator Sociedade de Jogos de Macau holds a 51 percent stake in the HK$1.2 billion project and Macau Success owns 24.5 percent.

Lee said the partners had given American architectural firm Jerde Partnership a six-month commission to design Ponte 16.

Jerde designed the new Langham Place mall in Mong Kok and was involved in the design of the Hong Kong Convention and Exhibition Centre and Cyberport.