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Lippo still working on disposal of Korean stake

Hong Kong-listed Lippo Ltd says it is still in discussions with Caesars Entertainment Corp. regarding the disposal of its stake in the proposed casino in Incheon, Korea.

In a filing to the Hong Kong Stock Exchange on Tuesday, an exit agreement is likely to be reached soon.

Lippo first announced it was considering withdrawing from its proposed joint venture with the US gaming company in March 2016.

Lippo said there is a number of uncertainties relating to the project, including the uncertainty as to whether a final license would be granted and the terms of the grant. Given the current outlook for the gaming industry in North Asia, Lippo said it was in discussions with Caesars about the possibility for a third party to acquire the group’s interest in the project.  

At the time, the company said even if it divests its interests in the project, the group may still consider participating in “certain developments”, but will not participate in any gaming aspect of the project.

In the filing on Tuesday, Lippo said “whilst it was anticipated the exit agreement would be entered into within November 2016, the exit negotiations are continuing, and their outcome is dependent upon a separate set of negotiations between Caesars Korea and the investor.”

“Accordingly, it is unlikely that the exit agreement will be entered into this month (November),” it added.

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