KIEN Huat Realty III Ltd, an investment company owned by a Lim family trust, has decided to spend US$55 million (RM194 million) to acquire 34.5 million shares in Empire Resort Inc., operator of the Monticello Gaming & Raceway complex outside New York.

Yesterday, Kien Huat has signed a pact with Empire Resort, under which US$ 55 million in new equity capital will be invested in the American company in two tranches in exchange for common stock.

Recently, Empire Resort has issued 6.8 million common shares to Kien Huat, representing about 20% of outstanding shares before the transaction, for US$11 million
(RM39 million).

In the second tranche, Empire Resort would issue an additional 27.70 million shares for raising US$ 44 million (RM155 million). Upon closing, Empire Resort said Kien Huat will own 34.5 million shares, putting its holdings at just under 50 per cent.

According to an official release, some US$2.6 million (RM9 million) will be used to pay interest on Empire Resort's convertible senior notes due on July 31 2014.