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Entertainment Gaming Asia Inc(NASDAQ:EGT) To Sell Cambodian Subsidiary Dreamworld Leisure

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Entertainment Gaming Asia Inc(NASDAQ:EGT) has entered into an agreement to sell 100% of the issued capital shares of Dreamworld Leisure (Pailin) Limited (DWP), a wholly-owned Cambodian subsidiary of the company established for the purposes of owning and operating Dreamworld Casino (Pailin) (Dreamworld Pailin), to a local Cambodian individual. 
 
In connection with the sale, the company said that it had also entered into an agreement to terminate all previous agreements with the company’s partner in the operations, who is a relative of the purchaser. 

Dreamworld Pailin opened in May 2012 and was constructed on land owned by the partner in the Pailin Province of Northwestern Cambodia next to the Thailand border. 

The company said that while operating losses for Dreamworld Pailin had narrowed in recent months, due to an inability to secure a long-term third-party table game operator, a low level of natural player traffic and the political unrest in Thailand, the company had been exploring strategic alternatives for the property. On June 20, 2014 it entered into an agreement to sell 100% of the issued shares of DWP to the purchaser. 

Total consideration paid to the company by the purchaser will be $500,000, of which $100,000 was paid at the time of entering the agreement and the balance is to be paid in sixteen $25,000 monthly installments commencing within one month of the signed agreement. 

The parties expect to complete the sale transaction subject to the purchaser’s receipt of certain government approvals, which is expected within the next few months. 

In connection with the sale of the issued capital shares of DWP, on June 20, 2014 the company and the partner also entered into an agreement to terminate the previous agreements with the partner and all future obligations thereunder including future lease payments owed by the company. 

Shares in Entertainment Gaming Asia Inc(NASDAQ:EGT) were unchanged at $0.812 during Thursday’s pre-trading session. Over the past 52 weeks, the company has seen a share price high of $1.98 and a low of $0.62

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