Film firm China Star sells Macau hotel for US$304.9m
Shares in film production company soar, after sale to Paradise Entertainment. China Star now plans to build a residential/commercial complex on adjacent land
Shares in film production company China Star Entertainment soared 62.3 per cent in morning Hong Kong trade on Friday after it revealed it is selling a hotel it owns in Macau to casino company Paradise Entertainment for HK$2.38 billion (US$304.9 million)
China Star closed at lunchtime in Hong Kong, up HK$0.215 to HK$0.56. Paradise Entertainment also rose, 18.89 per cent to HK$1.26 in morning trade.
Paradise said in a statement to the exchange on Thursday is was about to close a deal with China Star to acquire the 209-room Lan Kwai Fong Hotel in the former Portuguese colony. The property also has a casino, restaurants, shops, and a spa centre.
China Star said it plans to use part of the cash acquired from the sale to develop a “a two-tower luxury residential and commercial complex” on land it owns adjacent to the hotel being sold, where construction worked started last month.
China Star’s share price has collapsed more than 85 per cent since 2015. The production firm, which made its name through films such The Lion Roars and The Duel, has diversified its focus in recent years to gaming promotion, casino property and hotel investment.
The company’s most recent films have been League of Gods and From Vegas to Macau III in 2016.