Naga says $1.76 billion share subscription is fine amid Chen's death

Cambodian casino operator Nagakov Inc. issued a voluntary statement to the Hong Kong Stock Exchange, saying on Monday that the death of company founder Chen Lip-kyung on Friday "will not have a substantial impact" on key aspects of the company's business plans.

Shares of the company fell 9.20% in Monday's trading session following the announcement of the founder's death. It recovered 3.38% before Wednesday's trading session.

Nagakov holds exclusive rights to a long-lived casino in Phnom Penh, Cambodia's capital, which is exercised through the Nagaworld complex (pictured).

The statement on Tuesday was referred to in terms of business, a general contract between the company and Tien Lei-keung Fund Limited, with the latter signing over 1.14 billion shares of settlement to raise about HK$13.71 billion ($1.76 billion) per share.

The subscriber is an investment holding company that is directly owned by a company linked to Sakai Trust, a family trust established by the late Chen.

The company, dubbed the "Sakai Trust Company," is said to directly or indirectly hold 69.26% of Nagakov's issued shares.

Referring to its founder, the document noted, "To the best of the knowledge of this announcement date and the Board, the Board is of Directors of the view that Dr. Chen's death will not have a substantial impact on the Subscription Agreement, and the Board is not aware of any circumstances that may prevent the Subscription Agreement from remaining fully in effect or remaining in effect."

The filing also referred to Sakai Trust's loan of up to US$80 million. It observed that the "single purpose" of the loan was to "financed and/or discharged" part of the outstanding 2024 notes issued by the company.

In October, Nagakov said it would have "enough" capital to repay $472.2 million of outstanding bonds due in July 2024.

In a filing on Tuesday, the group said it was "not aware of any situation that could prevent or prevent the loan agreement from remaining fully and effectively."

The voluntary disclosure also said the board held a view that "as far as possible, there are no changes to the senior management of the company and the board is not aware of any potential changes" resulting from the death of the group's founder, except for the re-designation of the founder's son, Mr Chun Phon, as the group's new chief executive.

"Currently, management continues to receive full support from the board," the statement added.

In October, Nagakov reported earnings before interest, taxation, depreciation and amortisation (EBITDA) of $215.4 million for the first nine months of 2023. That figure was up 17.4% year-over-year.

BY: 메이저 토토사이트