(Yicai Global) Jan. 8 -- China Goldjoy Group Ltd. [HK:1282] has acquired 135,000 shares of Landing International Development Ltd. [HK:0582] at HKD0.295 per share for USD51 million (HKD398 million) via a wholly-owned subsidiary.

Upon completion of the deal, China Goldjoy will hold 257,000 shares of Landing International, with a  1.74 percent stake, China Goldjoy announced Jan. 5.

This development shows Baoneng affiliates have set their sights on the gambling sector, since Yao Jianhui, controlling shareholder and chairman of China Goldjoy, is the younger brother of Yao Zhenhua, chairman of Shenzhen Baoneng Investment Group Co. China Goldjoy is considered Baoneng affiliates' Hong Kong capital operation platform.

The offshore company Tianma Development Co. -- controlled by Yao Jianhui -- became the controlling shareholder of China Goldjoy through subscription, so Baoneng affiliates now hold over 70 percent of China Goldjoy's shares.

Landing International mainly develops and operates integrated leisure and entertainment resorts, casinos and real estate.

It also owns three projects -- Jeju Shinhwa World and Landing Casino at Hyatt Regency Jeju in South Korea. Landing International wants to position Landing Brand as a world-class leader in the gambling and entertainment industry, it said.

Landing International Development has expressed its intention to develop Jeju Shinhwa World into a world-class comprehensive holiday destination. Jeju Shinhwa World is the focus of its corporate business. The phased-in opening of this project started last year, Landing International said. The entire project is expected to fully operate by next year.

This new resort will feature deluxe hotels, hotel villas, conference and exhibition facilities, a casino, a theme park, shopping, entertainment and tourism facilities, as well as residences covering a gross floor area of 132,265 square meters, with apartments, villas and bungalows. One hotel will be the first six-star hotel in Jeju, per the current development plan. 

The reason for acquiring Landing International shares is that, with the development of the integrated leisure and entertainment resorts of Jeju Shinhwa World (covering over 2.5 million square meters), Landing International will own equity in the largest resort in the complex. This acquisition will diversify the group's current share investment portfolio and bring returns in the long term, its board believes, as China Goldjoy said. Jeju is a large island in the Korea Strait between South Korea and Japan. Its balmy climate makes it popular among nationals of both countries, as well as increasing numbers of affluent Chinese.