China Star Entertainment Limited (HKG:0326) has agreed to acquire 1% interest in each of Hotel Lan Kwai Fong (Macau) Limited (LKF (Macau)) and Charm Faith Holdings Limited from Sociedade de Jogos de Macau, S.A (HKG:0880) (SJM) for a cash consideration of HK$13 million. LKF (Macau) and Charm Faith hold 99% Interest and 1% interest in Classic Management Service Company respectively.

Upon completion, China Star will effectively own 51% interest in each of LKF (Macau) and Charm Faith. China Star is in preliminary negotiation with LKF (Macau) for the acquisition of the remaining 49% interest in LKF (Macau).

The principal assets of LKF (Macau) are 99% interest in Classic Management, which provides casino management in the hotel situated at Rua De Luis Gonzaga Gomes No. 176-230, Rua De Nagasaki No.64-A-82, Rua De Xiamen No.37-A-59, Macau.