KUALA LUMPUR: RGB International Bhd yesterday confirmed that it has sought the consent of note-holders for the proposed disposal of a portion of its equity interest in Chateau de Bavet Club Co Ltd in Cambodia.

“We have sought the consent of our note-holders of our RM200 million commercial papers/medium term notes programme (2007/2014) for the proposed disposal of Chateau together with other variations to the terms of the trust deed dated June 18, 2007,” the company told Bursa Malaysia Securities.

It added that the necessary disclosures had been made by the company’s facility agent, which is Maybank Investment Bank Bhd, to Bank Negara Malaysia and the Securities Commission on Sept 3 and Sept 6, respectively.

According to an industry source, an announcement to the stock exchange was unnecessary given that the debt papers in question were not listed.

In yesterday’s announcement, the company also reiterated that it was “still in the midst of negotiations for the proposed disposal of Chateau”.

Upon finalisation of the proposed disposal, RGB would undertake to release a detailed announcement pursuant to Chapter 10 of the Main Market listing requirements.

The gaming slot machine maker first announced the stake sale in its only casino asset in late June following a release by rating agency, RAM which disclosed the proposal.

In the statement dated June 25, RAM’s said the company aimed to make a sale of a 40% stake from its present 60% holdings in Chateau de Bavet for RM70 million with the proceeds used to redeem RM49 million of RGB’s commercial papers.

The industry source said given that the company was seeking the approval of note-holders now, any sale would take place only several months down the road. The stock closed 0.5 sen lower yesterday at 6.5 sen, after reaching an intra-day high of 7.5 sen and low of six sen, with over seven million shares traded.

This article appeared in The Edge Financial Daily, September 9, 2010.