Russian casino operator Summit Ascent has announced the planned acquisition from parent company LET Group of land rights for an undeveloped property in Okinawa, Japan, to set up a resort.
This comes despite the LET Group previously withdrawing its bid for a casino in the country in 2021.
Summit Ascent is now setting aside some HK$280 million ($35.77 million) to purchase both LET Group’s stake as well as the 49 percent stake of other shareholders, with a further $25 million ($3.19 million) ‘for designing and planning the future development of the land parcel’.
The sale also leverages funds previously earmarked for the second phase of the group’s Tigre de Cristal project in Russia.
It also follows a new rights issue of HK$601.4 million ($76.83 million), which the group was going to apply to the Russian gaming and hotel property.
The net proceeds of the issue, some HK$479.3 million will now be divided – with HK$280 million for the land purchase and HK$25 million for development, while HK$173 million ($22.1 million) will go to ‘general working capital or potential investment opportunities of the Summit Ascent Group’.
The group notes that, as its Russian development plans are stalled and the land parcel is Japan ‘is currently still in preliminary stages’ the group ‘intends to expand its available cash reserves more to practically seize any potential expansion and diversification opportunities’.