The 13 announces further delay to building arm sale

Monday 18th of December 2017

The 13 Holdings, which is developing a super luxury resort in Macau, said it has extended the deadline again to complete the sale of its construction arm, Paul Y. Engineering Group.

The company in June said it had reached an accord to sell 51.7 percent of PYE for a total consideration of HK$300 million ($38.41 million).

In a filing with the Hong Kong Stock Exchange, the company said it had agreed with buyers to extend the long stop date for completion from Dec. 28 to March 2018.

Hong Kong-listed 13 Holdings has been struggling to complete the hotel, which will be one of the most expensive in the world.

In October, it announced measures to raise funds, including the sale of PYE, to enable it to finance operations. It also said it would raise HK$1.01 billion through a rights issue and a placing of loan notes for up to HK$740 million to raise gross proceeds of HK$2.05 billion.

In addition, the group said it had obtained an indicative conditional offer of a further HK$600 million of financing following the opening of the hotel.

Management said at the time that the financing measures should provide sufficient working capital for the company for the next 12 months. It has now targeted a March 2018 deadline to open the hotel, which had been scheduled to debut this year.

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