MQTech abandons Cambodian theme park over casino plan

Malaysian investment firm MQ Technology Bhd confirmed in a filing with Bursa Malaysia on Wednesday that it will no longer be involved in developing projects that include hotels, casinos and theme parks in Cambodia.

In December 2016, MQ Technology said its subsidiary Star Acres Sdn Bhd had signed an agreement to work with Cambodian Resort Entertainment Limited on the development and management of a theme park identified as “Jurassic Theme Park.” At the time, MQ Technology said the entire project needed a total investment of $51.1 million to be completed over six years. This included $5.1 million for the theme park.

Cambodian Resorts and Entertainment was described as the owner of 5.1 hectares (12.6 acres) of land in Bontei Chakray in the Frey Ben province, near the border between Cambodia and Vietnam.

The contract between the two companies has already been extended eight times but expired on Wednesday.

“The board of directors of MQ Technology Bhd would like to announce that the Memorandum of Agreement, extended to January 2, 2019, is deemed to have expired.”

The contract was not extended “because the parties were unable to advance the venture,” the company added.

According to the original agreement, Star Acres was supposed to hold a 70% stake in the joint venture and provide funding for the construction of the theme park.

Through its subsidiary, MQ Technology has designed, developed and manufactured high-precision tooling for various industries, and in 2017 said it was seeking to diversify into “marketing services for gaming-related businesses.”

The Malaysian-listed company said in a December 2017 filing that it had signed a deal with a company called Vivo Tower Holdings Inc. to provide marketing services and take international junket players to Cambodia’s Star Vegas resorts and clubs, properties managed by Australia-listed Donaco International Inc.

Cambodia’s gaming industry is growing fast, and several new casinos approved its operations in 2018. A long-discussed draft game law for the Cambodian government is likely to be passed in 2019.

Cambodia’s government gave 52 new casinos permits in 2018, a 53% increase in gambling facilities from the previous year, the Phnom Penh Post reported on Wednesday.

Authorities are “actively drafting laws to control casinos and gambling businesses,” the newspaper quoted Ross Pirun, deputy director of Cambodia’s Ministry of Finance and Industry, as saying. “We hope that when it is finally completed and ready to be activated, the revenue of the sector will be greater,” he added.

BY: 릴게임

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