Amax International Holdings, listed on the Hong Kong Stock Exchange, has made an announcement that it has dumped its interest in the company that previously ran the Greek Mythology casino in Macau. The gaming company sold its interests to a property investment and business consultancy firm, Fu Po International Ltd in Macau. This decision was made after repeated unsuccessful attempts to receive audited financial statements.
Amax sold Fu Po its entire 24.8% stake in Greek Mythology Entertainment Group Corp. for a nominal sum. The impairment was $45.1 million and $3.63 million was due from Greek Mythology at the end of the previous year.
The company said that it will now concentrate in its casinos in Cambodia and Vanuatu. The company claimed in its filing, “The board is of the view that, based on previous discussion with the company’s auditor, the impairment and the disposal of the associate [Greek Mythology] could address and resolve the audit issues arisen by the auditor’s prolonged disclaimer of opinion on the company interest in the associate and the amount due.”
Greek Mythology, located at Beijing Imperial Palace Hotel, was shut down a few years ago. It was first temporarily closed in 2015. The casino was later permanently shut down after its operating license lapsed due to non-compliance of various Macau regulations. These included illegal structures and the company then consequently decided that undergoing the required renovations was not beneficial.
The impairments will probably not effect Amax’s bottom line. The company stated, “The board wishes to emphasize that the above-mentioned impairments are one-off and non-cash in nature and do not have any impact on the cash flow and the current business operations of the group.”