董事会认为，出售事项为集团变现于目标公司的投资为现金以作未来发展及投资的良机。本次出售的款项净额估计约为2600万港元。公司拟将出售事项所得款项净额用于加强集团现金流量及和一般营运资金。董事会认为，出售事项不会对集团的经营造成重大不利影响。New Silkroad Culture Group (0472) announced that on June 11, 2024, the Company (as the seller) and Yu Zhengguo (as the buyer) entered into a share and operating rights transfer agreement. Pursuant to the agreement, the seller will sell 72% equity interest in Megaluck Company Limited to the buyer for approximately HKD28.4 million in cash. It is expected that the company will incur a loss of approximately HKD37.2 million in connection with the sale.
It is reported that the target company is a limited company registered in South Korea and mainly engaged in the gambling business, including operating a casino on Jeju Island under the name of "Golden Beach" since 2010 and currently under the name of "MegaLuck". Under the law of Jeju Special Self-Governing Province, the target company is authorized to operate its gambling business.
As the global economy is expected to continue to linger at a low level, continuing to affect Jeju Island's tourism industry, the board of directors does not believe that the outlook for the target company will turn positive in the near future and believes that preparing to withdraw and dispose of the Group's South Korean business is appropriate.
The Board of Directors believes that the disposal represents a cash realisation opportunity for the Group's investment in the Target Company for future developments and investments. The estimated net proceeds from the disposal is approximately HKD26 million. The Company intends to use the net proceeds from the disposal for strengthening the Group's cash flow and general working capital. The Board of Directors is of the view that the disposal will not have any material adverse impact on the Group's operation.