Possibility of selling Naga Vladivostok to NagaCorp Limited

Following Russia's recent military invasion of Ukraine, a prominent Asian financial services and trading expert reportedly predicted that a local casino operator, NagaCorp Limited, may now be looking to sell off its under-construction Naga Vladivostok development. This expert's prediction was based on the assumption that NagaCorp Limited may now be looking to sell off its under-construction Naga Vladivost

The report comes almost a week after the Hong Kong-listed casino firm detailed that it had indefinitely suspended its plan to open the $350 million Las Vegas-style gambling development by the end of the summer due to 'various uncertainties.' The projection comes from Daiwa Capital Markets Hong Kong Limited. According to the report from GGRAsia, the projection comes almost a week after the Hong Kong-listed casino firm detailed that it had indefinitely suspended the plan. The source also said that this decision was published at the same time that the international community began enforcing a variety of sanctions on Russia. These sanctions might potentially make it more difficult for the firm to recruit clients and access sources of foreign investment.

Extended effort:

It was claimed that NagaCorp Limited began work on its anticipated first Russian facility in late May of 2015, with the intention of being able to operate the 279-room complex by the end of 2018. NagaCorp Limited is already responsible for Cambodia's enormous gaming complex known as NagaWorld. The operator of the Primorye Integrated Entertainment Resort zone scheme later disclosed that it was hopeful of being able to premiere the first stage of the Primorye Integrated Entertainment Resort zone scheme by the time the summer came to an end. However, the source disclosed that this schedule was ultimately derailed after local construction workers uncovered some archaeological finds.

Considerable consequences:

On the other hand, it was stated that an analyst working for Daiwa Capital Markets Hong Kong Limited named Terry Ng utilized an official filing on Tuesday to assert that "sanctions led to suspension of the Russia project" for NagaCorp Limited. In addition, the specialist with headquarters in Hong Kong reportedly stated that these actions may have hindered the operator's capacity 'to continue funding the project' as well as its capability 'to run efficiently.'

According to a statement that came from Ng, it read...

We have reason to think that NagaCorp Limited will seriously explore putting the project up for sale at some point.

A more pessimistic option is that...

According to recent reports, Daiwa Capital Markets Hong Kong Limited has reduced its profits prediction for NagaCorp Limited's forthcoming annual earnings before interest, tax, depreciation, and amortization by around 61.5%, bringing the total down to approximately $274 million. However, the specialist allegedly went on to predict that this total could rise to approximately $473 million for 2023 before hitting $605 million the following year, which would still be significantly lower than the company's 2019 figure of approximately $672 million. This was stated in the report that the specialist supposedly provided.

Concern over the coronavirus:

The doyen of financial services reportedly noted that the potential divestiture of Russian assets played a role in its most recent forecast alongside the'slower than expected recovery in regional travel' that followed the earlier lifting of restrictions related to coronaviruses in many of NagaCorp Limited's source customer markets. Both of these factors contributed to the latest outlook.

According to a statement that was reportedly read, Daiwa Capital Markets Hong Kong Limited...

Moving forward, we feel there is a low probability that pandemic-related closures will occur at NagaWorld. We concur with the management's expectation that "travel bubbles" with southeast Asian neighbors will be the primary recovery driver in 2022 as China continues to adhere to its "zero coronavirus policy."