NagaCorp terminates $3.5bn Naga 3 funding agreement

NagaCorp says it will evaluate its remaining development plan to determine if more funding is needed.

Cambodia.- NagaCorp has terminated the subscription agreement it entered to support the financing of its $3.5bn Naga 3 expansion. In a regulatory filing on Monday, December 15, the operator of Phnom Penh’s NagaWorld said a deed of mutual termination was executed, ending the agreement and waiving all claims related to the deal.

The 2019 agreement required Dr. Chen Lip Keong, the group’s then-controlling shareholder, to cover 50 per cent of the estimated $3.5bn in construction costs, amounting to $1.76bn, as well as any additional expenses. Payment was to be made via a rights issue of settlement shares at HK$12 (US$1.54) per share with the balance covered by internal funds.

The subscriber has already provided $316m in cash advances, but this will now be forfeited and transferred to the company’s reserves, with no settlement shares to be issued. NagaCorp has stated that it intends to continue with the development of the Naga 3 Project, despite the agreement being terminated. It said it will evaluate the remaining development plan and explore alternative sources of funding if necessary.

The resort’s expansion was initially expected to add up to 5,000 hotel rooms, 1,300 gaming tables, and 4,500 electronic gaming machines, with completion targeted for September 2026. The completion date has since been pushed back to September 2029.

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NagaCorp says it will evaluate its remaining development plan to determine if more funding is needed. Cambodia.- NagaCorp has terminated the subscription agreement it entered to support the financing of…