NagaCorp aims to reassure investors

Tan Sri Dr. Chen Lip Keong, died on December 8 due to illness.

12/13/23

It has issued an update after Tan Sri Dr. Chen Lip Keong’s death,

Cambodia.- NagaCorp has shared a company filing following the death of its founder and senior chief executive officer, Tan Sri Dr. Chen Lip Keong. It sought to reassure investors after the company’s shares fell 9.20 per cent.

The company referred to a loan agreement of up to US$80m announced on October 17 and a subscription agreement signed between the company and ChenLipKeong Fund. The agreement allows the latter to purchase 1,142,378,575 settlement shares at HKD12.00 per share, raising approximately HKD13.71bn (US$1.76bn).

NagaCorp stated: “The board is of the view that the passing away of Dr Chen will not have any material impact on the Subscription Agreement, and the Board is not aware of any circumstance that will or could prevent the Subscription Agreement from remaining in full force and effective.”

In October, the company shared its results for the first nine months of the year. It posted gross gaming revenue (GGR) of US$379m, up 12.1 per cent year-on-year. Unaudited preliminary earnings before interest, tax, depreciation and amortisation (EBITDA) was US$215.4m, up 17.4 per cent year-on-year.

Premium VIP Market rollings showed a 35.2 per cent increment as compared to the same period last year. Average daily rollings for the Referral VIP Market segment grew 43.3 per cent. Table buy-ins for Mass Market Tables increased by 18.5 per cent in the quarter ended 30 September 2023. The high-limit gaming areas, with higher average spending per customer, contributed to this improvement.

The casino operator’s cash and cash equivalents have increased from US$156m as of December 31 to US$297.6m. The company attributed this to the recovery of business volumes and prudent cash spending. Net debt was approximately US$174.6m.

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