Amax Holdings (HKG:0959) announced that it has agreed in principle with its associate company, Greek Mythology (Macau) Entertainment Group Corporation Limited, that an agreement shall be entered into between them and other existing shareholders of the associate in order to settle the controversy over the views held differently by the associate and it regarding the dilution in its shareholding in the associate as a result of the capitalisation issue of 2,439 shares of the associate to Chen Meihuan in full satisfaction and settlement of a shareholder's loan in the sum of HK$705 million owed by the associate to Chen.

A draft of the agreement includes the following major terms. The parties to the agreement shall confirm and acknowledge that immediately after completion of the capitalisation on 8 November 2010, Amax's shareholding in the associate has been reduced to 24.8%. If the qualified IPO (a proposed listing of the associate) is not completed within 24 months from the date of execution of the agreement (the term date), the parties to the agreement shall take all necessary actions to cause a reduction of the associate's issued share capital by way of redemption of the new shares, at a cash consideration of HK$705 million and restore Amax's shareholding in the associate back to approximately 49.9%. If at the term date the associate has become the wholly-owned subsidiary of Greek Mythology Holdings Limited (the purported holding company of the Associate for the purpose of the proposed IPO) through corporate reorganisation for the purpose of the proposed IPO, the parties to the agreement shall procure Greek Mythology Holdings Limited to repurchase at a cash consideration of HK$705 milion such number of shares of the associate to the effect that Amax's indirect shareholding in the associate is restored back to approximately 49.9%.