EMPEROR ENTERTAINMENT HOTEL LIMITED (Stock Code: 296)
Completion of Vessel Acquisition
The board of directors of Emperor Entertainment Hotel Limited (“EEH”) is pleased to announce that following the approval by the shareholders’ meeting on 3rd February 2005, the completion of the acquisition of the vessel “Golden Princess” has taken place today.
EEH entered into an agreement on 23rd November 2004 with a non-listed member of the Emperor Group to acquire the vessel “Golden Princess” at a consideration of U$17 million to be settled by way of issue of 104,409,000 new shares of EEH at a price of HK$1.27 per share. The issue price is equal to the closing price of the shares on the last trading date prior to the agreement after adjusting for the effect of the recent rights issue of EEH.
Upon completion of the acquisition of the vessel today, the total issued share capital of EEH will increase to 928,771,980 shares while the shareholding of Emperor International Holdings Limited (Stock Code : 163) and Emperor Group (non-listed) in EEH will be approximately 22.04% and 11.24% respectively.
EMPEROR INTERNATIONAL HOLDINGS LIMITED (Stock Code: 163)
Acquisition of 11.24% shares in Emperor Entertainment Hotel Limited
The board of directors of Emperor International Holdings Limited (“Emperor International”) is pleased to announce that after the completion of the Vessel Acquisition as referred to above, Emperor International entered into an agreement today with a non-listed member of Emperor Group (“Vendor”) to acquire 104,409,000 shares (“Sale Shares”) (i.e. 11.24%) in Emperor Entertainment Hotel Limited (“EEH”) (Stock Code: 296) at HK$1.58 which is equivalent to the closing price of the shares of EEH as quoted on the Stock Exchange on 15 February 2005, being the last trading day before the agreement. The Acquisition is a connected transaction under the Listing Rules and is therefore subject to the approval by the independent shareholders of Emperor International.
Emperor International will settle the consideration of the Acquisition by issuing 129,894,661 new shares (“Consideration Shares”) of Emperor International to the Vendor at HK$1.27 per share which is equivalent to the closing price of the shares of Emperor International as quoted on the Stock Exchange on 15 February 2005, being the last trading day before the agreement. The Consideration Shares represent 13.08% of the existing issued share capital of Emperor International and 11.57% of the issued share capital of Emperor International as enlarged by the Consideration Shares upon completion of the Acquisition. Together with the existing shareholding, Emperor Group (non-listed) will be holding approximately 69.08% of the total issued share capital of Emperor International while Emperor International, in turn, will be holding 33.28% of the total issued share capital of EEH.
The directors of Emperor International consider that the Acquisition is a good investment opportunity by allowing the Group to increase its stake in EEH and hence participate further in the tourist and entertainment business which the directors consider it has great business potential. Emperor International intends to hold the Sale Shares as long term investments. In view of such a good investment opportunity, subject to the market price being fair and reasonable as well as the market condition matches with Emperor International’s investment policy, Emperor International will consider acquiring further shares in EEH from the market but in any event not to an extent that will trigger a general offer obligation under the Takeovers Code (i.e. not more than 2% increase in shareholding in every 12 months period).
Likewise, Emperor Group is also optimistic about the growth potential of Emperor International’s investment in EEH as well as Emperor International’s own diversified business portfolio which includes property investment and development, provision of financial services, furniture retailing, hotel and restaurant operation and publishing and printing.All these business sectors have been steadily improving hand in hand with the Hong Kong economy which has been benefited from the “Individual Travel” policy of the PRC. As such, Emperor Group will continuously review its investment in Emperor International and will consider acquiring further shares in Emperor International from the market as and when the market conditions, including the market price, are appropriate.
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Issued by: Emperor Entertainment Hotel Limited
Emperor International Holdings Limited
Through: Emperor Group - Public Affairs Department
