MQTech discussing casino plans with NagaCorp

New directors: Krishnan (left) with Edwin at the company’s press conference in Kuala Lumpur. Both were recently appointed to MQTech’s board of directors.

KUALA LUMPUR: Ace Market-listed MQ Technology Bhd (MQTech) is in talks with gaming giant NagaCorp Ltd over plans to build a casino in its new integrated resort and entertainment project in Cambodia.

MQTech executive director Robbie Hari Krishnan Tatparanandam told a press conference here that the project was estimated to cost US$51.1mil (RM225.86mil).

“We are talking to NagaCorp regarding this and we are working with them. This project will be the very first integrated theme park resort and casino project in Cambodia,” he said.

NagaCorp Ltd, which is the largest casino operator in Cambodia, was awarded a 41-year monopoly to operate casinos within a 200-km radius from the Pnomh Penh city centre. MQTech’s proposed project site is about 103km from the capital.

Krishnan was appointed to MQTech’s board of directors last week.

Another newly installed executive director, Edwin Silvester Das, hinted that more changes are afoot with new substantial shareholders entering the company.

When asked whether Donaco Group’s Joey Lim could be one of them, Krishnan did not confirm or deny this.

Lim, who is a nephew of Genting Group chairman Tan Sri Lim Kok Thay, is managing director of Donaco International Ltd which runs a casino in Poipet, north Cambodia close to the Thai border.

“We cannot comment on that at this point,” he said.

The two directors noted that MQTech, which is primarily involved in precision mould making and the manufacturing of hard disk drives, is currently restructuring its business and finances to undertake new ventures.

Apart from the Cambodian venture, the company is also in the midst of building a new theme park called Malacca Explorer Resort – Dive Park Zone in Malacca which is expected to cost about RM60mil.

“After the restructuring is complete, we should be able to show better profits in 2017. The company will also maintain the hard disk business,” Edwin said.

Confirming a StarBizWeek report over the weekend, the company said that it is expanding further into the theme park business after entering into a Memorandum of Agreement (MoA) between its subsidiary Star Acres Sdn Bhd and Cambodian Resort & Entertainment Co Ltd (CRE).

Upon completion of a due diligence exercise, the two parties will set up a joint venture (JV) company whereby Star Acres will hold 70% while CRE has the remaining 30% stake.

CRE is the registered and beneficial owner of a 5.1ha freehold land in Banteay Chakrey in Prey Veng Province which is close to the Vietnam border.

The said land will have a casino, a 33-room hotel, a 72-room staff hostel, a restaurant, and other facilities.

CRE is leasing the casino license from a company called Arunbopea Layseng Keng Co Ltd to operate the casino business on the said land.

As part of the JV, MQTech plans to finance the construction of a Jurassic theme park for US$5.1mil (RM22.54mil) and basic renovation works for a casino hall and other facilities for US$3mil (RM13.26mil).

The bulk of the project’s actual value is tied up to a proposed development of two blocks of serviced apartments on the same land comprising a total of 500 rooms.

The apartments will be built in two phases with total indicative costs of US$43mil (RM190.06mil).

Krishnan clarified that the buildings will be completed within six years of the JV agreement’s signing while the final construction costs and method of financing for both phases are subject to a due diligence review.