China Star Entertainment, operator of the Lan Kwai Fong Hotel, announced a trading halt on Wednesday morning.
The company said the halt was “pending the issue of an announcement in relation to … the disposal of a group of subsidiaries of the Company which owns and operates Hotel Lan Kwai Fong Macau and a few other residential units in Macau.”
In June, Hong Kong-listed Paradise Entertainment Ltd. announced it had entered into a letter of intent for the proposed acquisition of two wholly-owned subsidiaries of China Star Entertainment Ltd.
The subsidiaries, Most Famous Enterprises Ltd. and Charming Era Investment Ltd. are the owners and operators of Hotel Lan Kwai Fong in Macau as well as residential units which are currently used as staff quarters.
Hotel Lan Kwai Fong Macau presents a total of 209 guest rooms, casino situated on the ground, first and 18th floors, restaurants, a flower shop, retail shops and a spa centre.
In a filing to the Hong Kong Stock Exchange in June, Paradise Entertainment said the acquisition represents a development of the group’s existing casino management service business.
“In addition, having its own hotel business will enable the Group to directly provide hospitality services to its patrons (instead of relying on hospitality services provided by other hotels) to support the Group’s existing casino management service business,” said the company in its filing.