OTTP Invests $38.7M In Macau Casino Developer Louis XIII

Hong Kong-based casino and hotel developer Louis XIII Holdings says that Ontario Teachers’ Pension Plan (OTPP) has invested HK$299.9 million ($38.7 million) in the company through a zero-coupon convertible bond issue.

According to a regulatory filing, the bonds will convert into 36.45 million shares at HK$8.23 apiece, a discount of 15.15% versus the previously closing price of HK$9.70.

After the transaction, OTPP will hold a 9.18 % stake of Louis XIII.

The company says it will use the proceeds to develop an exclusive boutique casino and hotel in Macau.

OTPP also bought HK$1 billion convertible bonds issued by Louis XIII subsidiary Paul Y Engineering in January.

OTPP is the largest single-profession pension plan in Canada, with US$129.5 billion in net assets as of December 31, 2012.