Asia Entertainment & Resources Ltd. Completes Acquisition of King's Gaming Promotion Limited's VIP Room in the Venetian Macau
8:30AM 11/16/10 | BusinessWire
Asia Entertainment & Resources Ltd. ("AERL") (NASDAQ: AERL, AERLW), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced that, through AERL's wholly-owned subsidiary, it has completed the acquisition of 100% of the profit interest in the operations of King's Gaming Promotion Limited ("KGP"), a Macau-based VIP room gaming promoter that currently operates one room with five tables at the Venetian Macao-Resort-Hotel on the Cotai Strip. KGP has been successful in maintaining an average Rolling Chip Turnover of approximately HK$1 billion (approximately US$129 million) per month over the past ten months under a fixed 1.25% commission on Rolling Chip Turnover.
As a result of the acquisition closing on November 15, AERL has the right to all of the profit interest of KGP dating back to November 1. Following the completion of the KGP acquisition, AERL has approximately 22.5 million total shares outstanding.
"The addition of this VIP gaming room will enhance our ability to serve our existing customers, and by combining our operations and network of agents with that of King's Gaming, we can expand our presence in the Macau VIP gaming market into the Cotai Strip, ultimately providing our shareholders with long-term value," said AERL Chairman Lam. "The acquisition, combined with our recent successful warrant redemption and capital raise, has positioned us well for future growth."
With the completion of the KGP acquisition, AERL reiterates its preliminary guidance of expecting 2011 Rolling Chip Turnover of US$1.15 billion per month and full year net income of US$55-60 million.
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