In an AMZ Holdings project announcement released today to AIM, the hotel and leisure company long known for its bid to obtain casino licensing in Taiwan for its resort development in Penghu says it has executed a letter of intent with Palawan Development Group (PDG) to open the first casino on the island of Palawan in the Philippines. The letter of intent is contingent on due diligence and approval by the AMZ board.

Palawan is an island with a population of approximately one million and is an important destination in the Southeast Asia region owing to two world heritage sites, beautiful beaches and its proximity to major Asian cities. Palawan is one of the fastest growing eco-tourist destinations in Asia and the company believes now is a perfect time to secure its position in this territory.

AMZ and PDG have an agreement to purchase an existing hotel in Puerto Princesa that AMZ will convert into its first hotel and casino. The purchase of the hotel and the conversion to a casino is expected to take approximately 6 months. After assessing demand, AMZ will make a decision as to whether the construction of a purpose built casino facility is justified. The total cost for establishing our first hotel and casino on the island is expected to be approximately US$6 million including acquisition of the hotel, renovations, installation of gaming equipment and start-up costs.

Michael Treanor, CEO of AMZ said: “This move is in line with our strategy to seek investment opportunities in other emerging gaming markets in Asia in addition to our site in Taiwan. The Philippines is a well established, highly regulated gaming market and the Island of Palawan represents a prime opportunity for AMZ.”

AMZ and PDG have obtained financing of approximately US$2 million for the acquisition of the hotel – resulting in a total capital requirement of US$4 million for AMZ. AMZ's initial financial commitment, to be met from its existing resources, would be approximately US$2 million. AMZ is in discussion with other parties regarding the balance which would fall due over a number of months. AMZ will be in control of the project, subject to a profit participation to be granted to PDG in exchange for arranging the deal and performing various other activities.

Bill Wyland, Palawan Development Group said: “It is exciting for us to be working with AMZ and a Board that has such solid international gaming experience. We look forward to working closely with Michael and the team over the coming months as we work on the conversion of the hotel into Palawan’s first casino site.” (E-10.07.08)

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