A deal to power a Pacific island casino project between Imperial Pacific International and a Hong Kong-listed energy company has failed to get investors excited.
Shares in Hanergy Thin Film Power Group which have been up fivefold in the past 12 months traded flat on Tuesday after the announcement of a proposed joint venture to build a renewable energy power plant in Saipan.
Imperial announced that the two companies have entered into an MoU for the design, construction, installation, operation and maintenance of power generation.
The venture will include “supporting facilities using various types of renewable energy, including but not limited to PV solar power generating facilities manufactured or procured by Hanergy, in and for supply to, among others, islands in the Pacific Ocean region.”
Following the news, Imperial investors sent shares in the Macau resort developer up more than 14 percent in early trading. The stock closed down 8.57 percent at HK$1.60.
“Judging from the market reaction shareholders don’t think it adds much value,” activist investor David Webb told the South China Morning Post.
“Both stocks are bubbles and so are made for each other,” said Webb, who has followed the two companies closely over the past six months.