Greek Mythology owns less than 25pc, a situation it is expected to rectify soon The conversion of four more convertible notes into new shares of A-Max Holdings has reduced the stake held by casino operator Greek Mythology (Macau) Entertainment Group to less than 25 per cent, according to A-Max. However, Greek Mythology could be expected to acquire further shares in the open market to maintain its stake at close to 30 per cent, people familiar with the issue said. Such a move should give some support to the share price, which has fallen 68.7 per cent from last year's high of $3.67 at the height of the 'Macau concept' frenzy just before Christmas, to $1.15. Greek Mythology, which became the single largest shareholder in A-Max early last month, plans to use the Hong Kong-listed manufacturer of liquid-crystal displays as a listing vehicle by gradually injecting more of its Macanese casino operations into it, according to a market source. As a result, it has been keen to increase its stake further but does not want to make a mandatory general offer - which, if accepted, could cost A-Max its listing status. A general offer would be automatically triggered if Greek Mythology's stake reached 30 per cent. 'The management has said it [intends] being the major shareholder and does want to buy more shares if its stake gets diluted,' the source said. However, some analysts remain cautious about the A-Max stock, noting that the company has no experience in running either casinos or hotels. 'The price action in this stock depends on the supply and demand situation with the major shareholder holding up the price while others remain eager to make profits from their convertible notes,' said Andrew To, a sales and research director with Tai Fook Securities. Mr To also was sceptical about a potential backdoor listing, saying A-Max was too small to absorb the casino operations of Greek Mythology, of which A-Max now holds a 13.8 per cent stake. According to yesterday's announcement, Su Weifen on Friday exercised four convertible notes with a total principal value of $800,000 into 276.2 million new shares, corresponding to 17.73 per cent of the enlarged issued share capital. All of those shares were then placed with four independent investors who will each hold between 4 per cent and 5 per cent in the company. The notes were converted at a theoretical conversion price of 27 cents to 31 cents per share while the shares were sold on at $1.10 each. A-Max's share price jumped 8.6 per cent intraday yesterday in heavy trading but retreated to settle down 0.86 per cent at $1.15. Following the conversion, Greek Mythology's stake fell to 23.29 per cent from 28.31 per cent. A-Max still has outstanding convertible notes with an aggregate principle amount of $6.4 million, which can be converted into new shares at a 5 per cent conversion ratio. Greek Mythology bought an initial 19.48 per cent stake in A-Max early last month.