New Silkroad to sell majority stake in Jeju casino

New Silkroad to sell majority stake in Jeju casino

New Silkroad Culturaltainment has sold a 72 per cent stake in its subsidiary MegaLuck Company.

South Korea.- New Silkroad Culturaltainment Limited has announced through a company filing that it has reached an agreement to sell 72 per cent of its stake in the MegaLuck Casino at KAL Hotel on Jeju island for KRW5bn (US$3.6m) to mitigate its losses. The buyer is Yu Cheng Kuo, who currently holds a 7 per cent stake in MegaLuck and is an independent third party in New Silkroad Culturaltainment.

The payment will be in three instalments. The first instalment of KRW0.5bn (US$363,172) will be made within 10 business days of signing the agreement, with a second instalment of KRW2.25bn (US$1.6m) due by December 20 and a third of the same amount by June 30, 2025.

The company said the agreed price was determined following an independent valuation. New Silkroad Culturaltainment Limited said the sale stems from a strategic shift to mitigate losses in the entertainment segment, with the proceeds, estimated at HK$26m (US$3.3m), to be reinvested to enhance the group’s cash flow and working capital.

It said it had incurred losses in its entertainment business of HK$283m (US$36,2m), HK$12m (US$1.5m) and HK$65m (US$8.3m) in each of the past three financial years.

See also: South Korean casino revenue up 40.7% in 2023

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