NagaCorp, the Hong Kong-listed parent company of Cambodian integrated resort NagaWorld, has provided reassurance regarding concerns over the passing of its founder, controlling shareholder, and Group CEO, Dr. Chen Lip Keong. The company released a statement on Tuesday, addressing the potential impact on recent loans and subscription agreements provided by Dr. Chen, who played a key role in NagaCorp’s financial arrangements.
Key Agreements:
Shareholders’ Loan (US$80 Million): NagaCorp clarified that the passing of Dr. Chen is not expected to materially affect the US$80 million shareholders’ loan provided in October. The loan, facilitated through a family trust established by Dr. Chen, serves as a crucial element in NagaCorp’s ability to refinance outstanding notes due in 2024.
Subscription Agreement (Naga 3 Project): The company also addressed a subscription agreement with ChenLipKeong Fund Limited, another entity under The Sakai Trustee, which agreed to subscribe for shares to support the development of the Naga 3 project. Despite the project’s completion being postponed until 2029, NagaCorp expressed confidence that Dr. Chen’s passing would not have a material impact on the subscription agreement.
Leadership Transition:
The company anticipates minimal changes to the senior management team, with the appointment of Chen Yiy Fon, one of Dr. Chen’s sons, as the new Group CEO. NagaCorp emphasized that the existing management team continues to receive full support from the Board.
The statement underscored the commitment of the senior management, led by Chen Yiy Fon, to adhere to the business strategies established by the Board, ensuring continuity in the company’s success.
In the wake of Dr. Chen Lip Keong’s passing, NagaCorp has provided clarity on the potential impact on crucial financial agreements. The company aims to maintain stability through the leadership transition, assuring stakeholders that the current management team, supported by the Board, will continue to navigate the company toward success in adherence to established business strategies.