Macau firm's exercise of convertibles avoids triggering general offer in overall back-door listing plan
Macau casino operator Greek Mythology (Macau) Entertainment Group has increased its stake in A-Max Holdings to 29.8 per cent by exercising a second batch of convertible notes on the same day it received them.
The conversion was done at a 112 per cent premium to A-Max's closing price yesterday of $1.66, a clear indication of how keen Greek Mythology is to take control of A-Max and use the company as a listing vehicle for its Macau gaming business.
A market source said the Macau firm's management intended to increase its stake in A-Max further but did not want to make a general offer for the outstanding shares.
The obligation to make such an offer would have been triggered if Greek Mythology raised its stake to 30 per cent of the issued capital, but the source said the management regarded this as a 'technical issue' that could be solved.
Greek Mythology also planned to make further injections of its casino business into A-Max on top of what had already been done, the source added.
On February 7, A-Max shares rocketed 51 per cent when Greek Mythology converted the first batch of notes to become the company's single largest shareholder with 19.48 per cent.