Imperial Pacific looks to raise $99.8M for Saipan casino project

The parent company of Best Sunshine International Ltd. is looking to raise close to $1 billion by offering up to 510 million new shares to finance its $7.1-billion integrated casino resort project on Saipan.

GRRAsia, an online newsletter about the casino industry in Asia, reported that Hong Kong-based Imperial Pacific International Holdings Ltd. has agreed to place a maximum of 510 million new shares in a bid to raise $99.8 million.

In its filing at the Hong Kong Stock Exchange, Imperial Pacific disclosed that “the funds will be used as general working capital, including financing the relevant costs and expenses for the casino project on the Pacific island of Saipan.”

GRRAsia reported that the new shares will be priced at HKD1.55 apiece, a discount of approximately 7.19 percent to the closing price of HKD1.67 per share on Tuesday.

“The maximum gross proceeds and the maximum net proceeds from the placing will be approximately HKD791 million and HKD774 million respectively,” said Imperial Pacific in its filing.

GRRAsia added that the maximum number of placing shares represents about 6.37 percent of the entire issued share capital of the firm and approximately 5.99 percent of the enlarged capital.

Imperial Pacific’s filing last Tuesday said its board considers “that the placing represents a good opportunity to broaden the shareholder base and capital base of the company and to raise certain required capital of the group.”

Best Sunshine’s $7.1-billion integrated casino resort on Saipan involves the construction of 4,200 hotel rooms and 300 villas, a 600-seat theater, 10,000-square-meter casino floor, 10,000-square-meter retail area, over 20 F&B outlets, and a theme park.

Last Nov. 19, Imperial Pacific filed with the Hong Kong Stock Exchange that it has been allowed by the CNMI government to bring in outside investors and offer up to 49 percent of the issued share capital of the company.

Gov. Eloy S. Inos said Best Sunshine’s parent company offering up to 49 percent of its issues shares to outside investors is within its rights under the casino license agreement with the CNMI Lottery Commission. He said the local government would only be concerned if Best Sunshine’s investment in the $7.1-billion integrated casino project dips below 51 percent.