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.