Landing International Development plunges in Hong Kong after Philippines scraps US$1.5 billion casino
The presidential spokesman announces the cancellation minutes after the firm broke ground for the project
Gaming and entertainment operator Landing International Development plunged in Hong Kong on Wednesday after Philippine President Rodrigo Duterte said he would cancel its US$1.5 billion casino project in the country.
Shares of the company plummeted by as much as 6 per cent to close at HK$5.98. They have gone down by 28 per cent since July 26 when the company announced the development plan.
The presidential spokesman said on Tuesday the lease contract that Landing signed with a state-owned foundation in March was “grossly disadvantageous to the government” because of “unconscionable” rental payment.
Landing, controlled by Chinese property tycoon Yang Zhihui, broke ground for the casino project in Manila just a few minutes before the announcement. The firm said it would “take all necessary action to amicably resolve all issues and to ensure that the project will proceed as planned” in a statement published on Tuesday night.
“The lease is legal, valid and enforceable,” the firm said, adding that it had not received any official communications from the Philippine government regarding the lease.