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Far East Consortium International Ltd. (FEC), a Hong Kong-based business conglomerate, has signed a new deal to acquire Trans World Corp (TWC), which would allow it to operate casino in Czech Republic. The deal offers an ideal launching pad for FEC in Europe, as TWC has several facilities in Germany and Austria as well.
The amount for acquisition is not officially released. Still, in FEC’s financial filing in March indicates the amount would be around $42 million, pending any adjustments necessary for “dissenting” shareholders.
In March, FEC announced that it would be negotiating a deal, through its FEC Overseas Investment Ltd. subsidiary, with a firm that operated gaming businesses in the Czech Republic. It detailed the firm as being TWC, which holds gaming licenses in the country, which allow it to offer “live and technical games” in three different casinos. The licenses were issued in January, and are valid for three years. The deal hinged on the approval of regulators in Nevada, where its overseas investment company is registered.
In acquiring the Czech Republic-based operations, FEC said that it “would add some of the best casino assets in the region” to the group, as well as providing an “additional stream of steady recurring cash flows and profits.”
TWC is also incorporated in Nevada, and is spread out all over the map. It owns and/or operates two four-star hotels and one three-star hotel in Germany and two four-star hotels, one each in Austria and the Czech Republic. It also has three casinos in the Czech Republic, all branded “American Chance Casinos.”
FEC has operations in China, Hong Kong, Malaysia, Singapore, the UK, Hungary, New Zealand and Australia, where it currently holds a 4.99% stake in The Star Entertainment Group Ltd. It joins Hong Kong’s Chow Tai Fook Group, which acquired the same 4.99% stake, and Star Entertainment in a casino project being pushed for Queen’s Wharf in Brisbane, Australia.
FEC made its public appearance on the Hong Kong Stock Exchange in 1972. It has received several awards, including the “7th Asian Excellence Award” and “Best Mid-Cap Company” in 2017. Its net profit margin climbed 1.7% between 2016 and 2017, increasing from 21.4 to 23.1%.
Source: European Gaming Media and Events