The extraordinary general meeting by the LET Group to vote on the disposal of its Russian assets, including the Tigre de Cristal casino in Russia, is scheduled for August 15th.
According to a filing with the Hong Kong Exchange, this move aims to optimize the company’s assets.
LET Group stated that its subsidiary, including Summit Ascent, holds significant assets and operations in Japan and the Philippines. The ongoing development of these assets is financed by bank loans.
However, continuing to hold G1 Entertainment, the operational entity behind Tigre de Cristal, ‘carries risks of sanctions being imposed on these assets or LET Group and its subsidiaries by these countries and territories (namely, the Philippines and Japan), all of which are allied with the US’, the company noted.
Meanwhile, Major Success, a requisitioning shareholder, supports the disposal. Despite G1 Entertainment accounting for a significant portion of the group’s revenue and total assets in recent years, Major Success believes that continuing to hold G1 Entertainment ‘will bring too many uncertainties and risks to the development and prospects of LET Group’.
The same documents also indicated that the sale price should be ‘no less than $92.8 million’, which is 80 percent of the $116 million previously mentioned earlier this year.
In January, LET Group attempted to offload all its shares in G1 Entertainment to Dalnevostochny Aktiv, a Russian firm, for $116 million. However, the deal fell through, with the majority of directors of LET Group and Summit Ascent resigning in opposition to the sale.
