Gaming | South Shore discussing potential sale of subsidiary

An under-discussion transaction could lead South Shore Holdings to sell a 60% stake in one of its subsidiaries that owns The 13 Hotel in Cotai.

The sale, which is being considered to an associate of a substantial shareholder of the Company for a sum of HKD1.2 billion, would be used to reduce the debt accrued over the course of the hotel’s development.

South Shore signed a memorandum of understanding with the possible investor in January and has renewed the memorandum at least once since. It has not disclosed the identity of the possible buyer.

“Subject to contract, the company envisages that the transaction could extend to a disposal of 60 percent interest in a subsidiary of the company that beneficially owns The 13 Hotel together with its respective bank borrowings of approximately HKD2,942 million and the interest accrued thereon for a consideration of up to HKD1,200 million,” the company said in a filing to the Hong Kong Stock Exchange on Monday.

“As at the date of this announcement, the company has not entered into any definitive agreement in relation to the potential disposal and is still in negotiations with prospective investor(s).” DB