Some people believe in luck. The 13 in Macau probably does. Low bookings mean low revenues for developers. South Shore Holdings has found a way out. It has found a mining company to take it over. We wonder why?
Hotel ownership is a very different prospect. Now it is up to CST Group Ltd, (a company specializing in mining and e-logistics operations) to make the most of its stake of 10%.
It has thrown $19.1 million into the deal.
Need an explanation? This means CST will have an equity interest and a shareholder’s loan from Uni-Dragon Ltd, of the British Virgin Islands, that indirectly owns all of the interests in New Concordia Hotel Ltd.
They are the sole beneficial owner of The 13 and are now allowing CST to diverse its investment portfolio by entering the real estate market in Macau
Meanwhile, South Shore is planning dump up to 40% of its holdings. This is a major move worth as much as $95.6 million.
The reason is evident. The company reported in March (the end of its fiscal year) a net loss of over $744.43 million, partly due to a lack of progress at The 13.
They had envisioned a hotel-casino complex, but it never really got off the ground and is moving rather slowly. Hence it lacks a major gaming concessionaire.
CST is previously known as NetMind Financial Holdings. It is based out of Hong Kong. It operates there as well as in China and Australia. In fact, it operated Australia’s large Lady Annie copper mine until selling it earlier this year. The holding company also is a player in financial instruments, property investment and money lending markets.