International edition
September 20, 2020

The private equity fund has hugely gained from its investment

Permira exits Galaxy Entertainment

(Hong Kong).- European-based private equity fund Permira exited its investments in Macau casino operator Galaxy Entertainment after offloading all shares it owned in a share placement on November 7.

T

he private equity fund raised a total of us$ 871.68 million by selling about 249.6 million shares or 5.94% of the company’s issued shares at us$ 3.50 each.

The seller went to the market on the day the share price hit a year-high of us$ 3,78. The offering range stood at us$ 3.50 to us$ 3.54, representing a discount of 4%-5% to the closing price of us$ 3.69. The placement was priced at the wider end of the discount range.

After the share placement, the shares traded as low as us$ 3,50, slightly below the offering price on November 8 2012 but recovered to around us$ 3,53. The completion of the share sale is expected to be on November 12. UBS is the global coordinator and bookrunner.
The sale placement was done through Permira's ENB Lux 1 S.àr.l and ENB Lux 2 S.àr.l vehicles in a private placement, according to an announcement.

In recent years, Macau’s gaming industry has benefited from China’s strong economic growth, which helped drive tourism and gaming activities in the territory. However, the gaming sector is facing stiff competition as the Macau government opened up the industryand released more licenses.

Permira sold 278.8 million Galaxy shares at us$ 2.70 each in August this year and another 528 million shares in September last year. Taking profits from the recent rally, the private equity fund has hugely gained from its investment in the Macau-based establishment where it initially put in us$ 842.5 million in 2007 for a 20% stake.

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