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A-MAX HOLDINGS LIMITED
Very Substantial Acquisition Relating to
Financial Assistance and Placing of New Shares
Hong Kong, November 6, 2007 - A-Max Holdings Limited (“A-Max” or “the Company”) (stock code HKSE 959), an active player in the gaming and entertainment business in Macau, issued a circular in relation to the Very Substantial Acquisition Relating to Financial Assistance and Placing of New Shares pursuant to which CLSA shall place up to 23,076,923,077 new Shares, representing approximately 67.32% of the enlarged share capital of the Company, to raise funds of up to HK$ 3 billion. The net funds raised will be used to provide a term loan facility to Ace High which in turn will on-lend the same amount to AMA to operate the junket business in co-operation with a world class casino in Macau. The transaction is subject to shareholders’ approval and a SGM of the Company will be held on 21 November.
AMA’s arrangement with its junket collaborators and the partner casino will give A-Max an opportunity to reap substantial financial benefit from a junket business which could reach a potential HK$ 77.4 billion rolling chip turnover each month. The arrangement will allow AMA to receive commission and bonus from the partner casino of up to 1.35% of the rolling chip turnover and AMA will pay the relevant collaborator at a rate up to 1.21% if they can reach 80% of their committed turnover, or up to 0.91% if less than 80% of the committed turnover is reached.
A-Max currently participates in the gaming and entertainment business through its investment in Greek Mythology where the company also operates 5 VIP gaming tables and 204 slot machines.
The Company continuously focuses on the new operating environment and indentifies investment opportunities to broaden its revenue base and market share in the gaming and entertainment business.
Mr. Cheung Nam Chung, Brian, Chairman of A-Max, said: “We are delighted that Hong Kong Stock Exchange has approved our circular and that we have appointed CLSA as our placing agent to raise funds developing our junket business in association with AMA.
We are confident that our partners can generate the HK$ 77.4 billion monthly rolling chip turnover, representing approximately 52% of VIP gaming market share, and believe that the transaction will generate significant profitability and bring a bright future for the company by establishing a strong presence in the VIP gaming market in Macau.
We are looking forward to the successful completion of the transaction and realizing our shared vision with AMA to develop the VIP junket business.”
Mr. Francisco Xavier Albino, Sole Director of AMA, said: “We are excited about the transaction and looking forward to commencing business with our partner A-Max, who will contribute capital to allow us to consolidate our junket operations in Macau and work with our top class partner casino.”
This press release should be read in conjunction with the circular.
Issued by : Through :
A-Max Holdings Limited
t6.communications limited
Jenny Lee or Angus Ho
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