The LET Group has approved the disposal of its Russian assets, including the Tigre de Cristal casino in Russia, in an extraordinary general meeting of its board held on August 15th.
In a recent dispatch, the LET Group described the disposal plan as being in the ‘interest of the company’ and requested its subsidiary Summit Ascent to take steps and allocate resources to implement the disposal plan as soon as possible after the passing of this resolution, in a move aimed at optimizing the company’s assets.
In the first month of this year, it was revealed that Oriental Regent Limited, the operator of the Tigre de Cristal Resort, plans to sell the entire stake in its wholly-owned G1 Entertainment LLC to a Russian firm.
G1 Entertainment possesses a gaming license for Tigre de Cristal, which the Russian government has officially granted.
However, the deal fell through, with the majority of directors of LET Group and Summit Ascent resigning in opposition to the sale.
The deal was initially valued at $116 million, which will be paid in Chinese yuan, but later documents now indicate that the sale price should be no less than $92.8 million.
The operational entity behind Tigre de Cristal, was considered to carry risks of sanctions linked to the Ukraine war being imposed on these assets or LET Group and its subsidiaries by countries and territories, namely, the Philippines and Japan, which are allied with the US.
Despite G1 Entertainment accounting for a significant portion of the group’s revenue and total assets in recent years, Major Success, a requisitioning shareholder, believes that continuing to hold this entity ‘will bring too many uncertainties and risks to the development and prospects of LET Group’.
Andrew Lo Kai Bong, the head of LET Group, Summit Ascent, and Suntrust—companies listed in Hong Kong and the Philippines—is reportedly working to lift Ukrainian sanctions imposed on him.
