Last night, Macrolink International Real Estate Co., Ltd. (Macrolink International) announced that its indirectly held subsidiary New Silkroad Culturaltainment Ltd. (New Silkroad) signed an equity transfer agreement with the shareholders of Development Golden Beach Co., Ltd the day before to acquire 13% of its equity interest at KRW 9,880m (equivalent to about HK$67.18m).
Upon completion, New Silkroad will hold 72% equity interests in the target company.
It has been reported that New Silkroad has been increasing its equity in the target company since 2015. On 13 August 2015 it invested KRW 38.5bn (or HK$24.8m) for a 51.5% equity interest in Development Golden Beach Co., Ltd.
On 1 February this year, New Silkroad signed an equity transfer agreement with Development Golden Beach Co., Ltd. again for a 7.5% equity at the cost of KRW 57bn (or HK$37m).
The target company has been operating casino business under the trade name of Golden Beach at KAL Hotel since 2010. Development Golden Beach Co., Ltd. was registered under the Korean law on 15 December 2009 and acquired its casino business license for operation in Jeju Special Self-Governing Province on 28 December 2009.
Macrolink International says it is confident with the future of tourism and casino business in Jeju Province with the help of New Silkroad. The region will be benefited from the potential revenue and development generated by this investment. Adding to the existing villa project that Macrolink owns in Jeju, this acquisition will refine its scales of business on the island.