Error message

  • Notice: Trying to get property of non-object in template_preprocess_imageblock_content() (line 349 of /home/agbrief/agb/sites/all/modules/imageblock/imageblock.module).
  • Notice: Trying to get property of non-object in template_preprocess_imageblock_content() (line 349 of /home/agbrief/agb/sites/all/modules/imageblock/imageblock.module).

Lawrence Ho divests Summit Ascent stake

Lawrence Ho said he is selling off his entire stake in Summit Ascent Holdings, shortly after the Russian government announced changes that could potentially double taxes for the company’s Tigre de Cristal resort near Vladivostok.

Ho, who is chairman of Summit Ascent, holds 1.34 percent directly and a further 16.03 percent through his wholly owned Quick Glitter company. The shares are being placed with a minimum price set at $1.05 a share.

Ho began paring down his holdings in September, cutting his stake from 27 percent to 17 percent.

Apart from the potential tax hike, which comes into effect next year, the government in Russia has also said that taxes are likely to increase by a further ten times by 2020. The resort in the Primorye gambling zone has also been held back by rampant illegal gambling in the area, which has affected its ability to attract the local mass market.

As a result, Union Gaming notes that the chance of the Phase 2 portion of the project moving ahead, or for other planned resorts to be developed “becomes diminished by the day.”

“We largely expect a status quo situation where the company's Phase 1 project, Tigre de Cristal, remains the only legal gaming facility in the Russian Far East for the foreseeable future,” the firm said in a research note.

“With Phase 2 less likely, and with the benefits of concentration of other new supply now most likely several years away at best, we believe it is only fair to value shares based solely on the Phase 1 opportunity. As such, we are maintaining our Hold rating and maintaining our HK$1.00 PT, which only considers the value from Phase 1.”

Hong Kong-listed Nagacorp has begun work on its resort in Primorye and recently said it is likely to open in mid 2019, while Russia’s Diamond Fortune Holdings is still preparing the ground for its Selena Resort.

More news from this jurisdiction

RussiaTuesday, Jan 16, 2018

Despite initial claims that "all the works" on a gambling zone in Russia-annexed Crimea would be completed in 2017, there appears to be further foot dragging in the beginning of 2018.

RussiaWednesday, Jan 03, 2018

Russia’s parliament has pushed through a law that will exempt casinos from the need to deduct taxes from their clients’ winnings.

RussiaThursday, Dec 14, 2017

Online gambling business magazine Login Casino will conduct an online conference dedicated to streaming of gambling games on January, 23.

RussiaTuesday, Dec 05, 2017

Online gaming business portal Login Casino is hosting an awards ceremony recognizing the companies that have made the largest contribution to the betting industry in Russia.

RussiaWednesday, Nov 29, 2017

Gaming brokerage firm Union Gaming says it is downgrading its view of Summit Ascent Holdings due to the recent news of a two-fold increase in gaming taxes in Russia.

RussiaWednesday, Nov 29, 2017

Russian President Vladimir Putin has signed into law two bills regulating betting activities in Russia.

RussiaTuesday, Nov 21, 2017

The Russian branch of international bookmaker Bwin has officially launched its website and will soon start accepting bets on Russian territory, according to a statement on its website.