Baha Mar gets acquired
A Chow Tai Fook Enterprises (CTFE) subsidiary has acquired Baha Mar casino in the Bahamas.
Bahamas.- Chow Tai Fook Enterprises (CTFE) has finally closed the agreement to acquire the Baha Mar casino in the Caribbean country of Bahamas. The Bahamian government has sealed the deal with Chow Tai Fook Enterprises (CTFE) on the sale of the US$4.2 billion Baha Mar casino resort on Nasau. After it’s ceremonial opening on April 21, last week, both parts formalised the purchase arrangement that wasn’t final until now.
The transaction began in April, but the company has closed it yesterday, as the “sale was conditional on a number of factors, such as theproperty’s main contractor, China Construction America (CCA), achieving “substantial completion” of the project by October 15.
The agreement makes CTFE pay a fee of US$100 thousand per 1,000 square feet of casino floor space anually and a tax of, minimun, US$4.3 million on the first US$20 million of anual gaming revenue and an aditional 10 percent of gaming revenue above US$20 million. However, the company won’t be responsible for the US$10.75 in deferred casino taxes that Baha Mar Ltd, the previous developer, left after its liquidation.
The Honkonger enterprise has been assured by the government that there won’t be any casino licenses issued on either New Providence or Paradise Island in the next 20 years. CTFE will also face the same casino fees and taxes than those that existing venues on said regions pay regularly.
