Marianas Variety

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    Saturday, December 7, 2019-4:20:15P.M.

     

     

     

     

     

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IPI owner’s remaining share still in compliance with casino license, official says

THE remaining share of Imperial Pacific International’s major shareholder, Inventive Star Ltd., will still be in compliance with the casino license agreement, Commonwealth Casino Commission Executive Director Edward C. Deleon Guerrero said.

CalvinAyre.com reported on Wednesday that Inventive Star is selling 4.9 percent of its share capital. This represents 7 billion IPI shares, CalvinAyre.com added.

If the sale is completed, the share of Inventive Star in IPI will go down to 58.58 percent from 63.47 percent.

According to CalvinAyre.com, IPI informed investors on Tuesday that the shares will be sold “to a company identified only by Chinese characters 進英投資有限公司.”

Inventive Star is owned by Chinese national Cui Li Jie, who also serves as an IPI executive director and, as of January, occupies the chairperson’s seat, CalvinAyre.com stated.

Asked for comment, Commonwealth Casino Commission Executive Director Edward C. Deleon Guerrero said Amendment No. 8 to the casino license agreement reduced from 51 percent to 10 percent the required majority shareholder’s controlling interest in the company.

The amendment, which was requested by IPI, was approved by the CNMI Lottery Commission in May.

Even prior to Amendment No. 8, the remaining share of Inventive Star would still have been in compliance with the 51 percent requirement.

Deleon Guerrero said based on Thursday’s value of shares, the 4.9 percent share that Inventive Star is selling is estimated to be worth close to $90 million.

CalvinAyre.com also reported that “this is the second major IPI share sale Cui has attempted in a little over four months. She has tried to unload 14 billion IPI shares to Guan Lian Capital Holdings in July. But that announcement cited the same pre-transaction share percentage as Tuesday’s filing, suggesting that the profit warning IPI issued one month later may have proven to be a deal-breaker for Guan Lian.”

Two weeks ago, Federal Bureau of Investigation agents raided the finance and human resources offices of the casino operator at Marianas Heights Building.

The FBI also raided the office of Gov. Ralph DLG Torres, the office of Legend Realty, and the office of IPI consultant Alfred Yue of Marianas Consultancy Services LLC at the IPI-owned Vestcor Commercial Plaza on Capital Hill.

The seven-page search and seizure warrant pertains to allegations of fraud by wire, radio, or television; scheme or artifice to defraud; attempt and conspiracy; laundering of monetary instruments; and contributions and donations by foreign nationals.

IPI and the governor have denied any wrongdoing.