Iao Kun Group Holding Company's indirect wholly-owned subsidiary, Iao Kun Jeju Hotel Company, entered into a share purchase agreement with Golden & Luxury Company, Solaire Korea Co. and Bloomberry Resorts Corporation to acquire the Jeju Sun Hotel & Casino in Jeju, Korea for KRW117.5 billion in cash (US$101 million based on the exchange rate as of on June 22, 2016).
Jeju Sun Hotel & Casino is located in Jeju City on the island of Jeju-Do in Korea, five minutes from Jeju International Airport. The hotel has 203 rooms and suites, 2,125 square meters of gaming space with table games such as baccarat, blackjack, Sic Bo, roulette and slots and electronic gaming machines. The hotel is also host to several dining establishments with international cuisine options, a lobby lounge, bar and banquet facilities.
“We are excited to be acquiring the Jeju Sun Hotel and Casino in Korea, our first lodging venture, which effectively broadens our strategic focus toward becoming a full-service hospitality company,” said Lam Man Pou, chairman of IKGH. “We believe the acquisition will materially expand our footprint in Asia into the growing Korean market and increasingly popular island of Jeju-Do while allowing us to further diversify and stabilize our revenue streams and cash flows. We expect the current Jeju Sun Hotel management team will remain to continue to run the newly-renovated property, and we look forward to welcoming them to IKGH.”
Under the terms of the agreement, Iao Kun Jeju will acquire 96.23 percent of the outstanding capital stock of Golden Luxury, as well as all loans and obligations under finance leases and all other monetary liabilities payable by Golden Luxury to Solaire Korea Co. and Bloomberry Resorts Corporation. IKGH intends to finance the acquisition through a loan and the issuance of equity, and the transaction is expected to close in the third quarter of 2016, subject to the satisfactory completion of due diligence and customary closing conditions, including the receipt of any required governmental approvals.