Genting Singapore sells stake in Jeju Resorts World 

Furthermore, Genting International Resorts Management Limited (GIRML), an indirect wholly-owned subsidiary, entered into a conditional sale and purchase agreement with LIDL’s directwholly-owned subsidiary, Landing Singapore Limited (LSL), to dispose of GIRML’s 50% shareholding in Autumnglow Pte. Ltd. (Autumnglow) for S$1.

Callisto’s wholly-owned subsidiary, Happy Bay Pte. Ltd., owns 50% of Landing Jeju Development Co., Ltd., (Jv Co) which is developing an integrated resort in Jeju, Korea.

Completion of the Disposals will occur simultaneously and are expected to take place in Q1 2017, conditional upon LIDL having obtained their shareholders’ approval for the Disposals.

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The US$420m cash consideration for the Callisto Disposal is derived based on an agreed premium to the Group’s aggregate contributions to the JV Co of US$380.76m

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The aggregate consideration will be paid in two tranches, with US$220m payable on completion and the balance (secured by a charge over the shares of Callisto) payable within six months thereafter.

The Group is comfortable in delivering healthy performance at Resorts World Sentosa. The Group has narrated its shift to focus on different market segments, and has been developing strategies to improve offerings to the affluent target markets.

These strategies, including the Group’s brand repositioning and development of new facilities, will help it grow within its home base in the near term.

Recent news reports from Japan are encouraging with regards to the advancement of the process to debate and pass the Integrated Resort Promotion Bill. The Group is optimistic that this Bill will be enacted in the near future.

"When this happens, significant resources will need to be devoted to position the Group as a strong candidate for the bidding process," it said.

This opportunity is of significant value to the growth of the Group. In implementing the Group’s medium term corporate strategies and taking into consideration the above, the Company has decided to dispose of its 50% interest in the JV Co.

The aggregate consideration represents a 10% premium to the Group’s contributions to the JV Co.