The LET Group is further adjusting its investment portfolio. After previously announcing the sale of a mall operator in mainland China for $2.8 million, it is now announcing the sale of another wholly-owned subsidiary, Faith Best Asia (HK), for HK$19.95 million ($2.55 million).
According to Thursday’s filing, the Hong Kong-listed LET Group has entered into a sale and purchase agreement with a company incorporated in the British Virgin Islands, controlled by Zhong Jianhua, to sell 100 percent equity interest in Faith Best Asia.
The sale is expected to result in a pre-tax unaudited loss of HK$2.4 million ($310,000) due to the disposal. LET notes that it “intends to use the net proceeds from the disposal for the purpose of general working capital of the Group.”
Considering that the process of dissolving the subsidiary is “time-consuming and costly,” the Directors believe that the disposal offers an opportunity for the group to realize its investment in the subsidiary. The terms of the Sale and Purchase Agreement are on normal commercial terms and are deemed fair and reasonable in the interests of the Company and the Shareholders as a whole.
LET Group, formerly known as Suncity Group, is the largest junket operator in Macau. Currently, the firm is an investment holding company incorporated in the Cayman Islands, primarily engaged in the development and operation of the Main Hotel Casino in the Philippines.
LET is also engaged through Summit Ascent Holdings Limited in the operation of the hotel and gaming business in the Integrated Entertainment Zone of the Primorye Region in Russia and property development in Japan.