The Suncity Group explained in a June 1 filing to the Hong Kong Stock Exchange that it is aiming to take a 70 percent interest in Summit Ascent and make the company into a subsidiary.
Under the proposed deal, Victor Sky, a direct wholly-owned subsidiary of the Suncity Group, which currently holds a 22 percent stake in Summit Ascent, will see that stake upped dramatically. Together with Suncity’s direct stake in Summit Ascent, it will control nearly 70 percent of the shares.
The financial results of Summit Ascent would thereafter be accounted as a subsidiary of the Suncity Group and would be consolidated into the financial statements of the parent company.
The value of the deal is about HK$1.2 billion (US$161 million).
Summit Ascent is the operator of the Tigre de Cristal in the Russian Far East.
Consolidation of the bases and advancement in adversity was the thrust of Macau Chief Executive’s policy address for 2021, though it gave little away when it came to the current pillar of the economy - the gaming industry.
Gaming suppliers, like all areas of the industry, have felt the pinch from the Covid-19 crisis, though their growing digital businesses have proved a bright spot and helped offset the impact of the crisis.
While nowhere in the world has escaped the economic fallout from the Covid-19 crisis, Macau has been hit harder than most, with forecasts for gross domestic product to shrink more than 50 percent this year.