Landing International has agreed to acquire a half stake in a South Korean casino from its partner Genting Hong Kong for 130 trillion won (HK$864 million), as it bet on the opportunities brought about by the influx of Chinese tourists.
Jeju casino is a 50-50 joint venture between Genting Hong Kong and Landing, which has a wide array of businesses ranging from semiconductor lighting products to property development. The transaction, announced by Landing, will bring the company a step closer to a presence in the gaming industry.
“[The Jeju casino] will provide a good platform for the group to build up its own brand name and goodwill in the gaming industry, and to develop its own professional team in casino operation and management,” Landing said in a statement to the Hong Kong stock exchange.
Jeju is one of South Korea’s visa-free entry points for mainland Chinese tourists, whose visits to the country surged 58 per cent to 2.9 million last year, the statement shows. The casino has seen revenue rocket 16 times and turned a net profit of HK$50 million over the first-half of this year.
The disposal by Genting Hong Kong, an affiliate of Malaysian resorts conglomerate Genting Group, will also allow it to focus on the cruising business, the statement says. Genting in March bought luxurious cruise line Crystal Cruises from Japan’s Nippon Yusen Kabushiki Kaisha for US$550 million.