A Russian company that intended to purchase Tigre de Cristal Resort is looking to terminate the deal, Summit Ascent and LET Group announced.
Oriental Regent Limited, the operator of the Tigre de Cristal Resort, planned to sell the entire stake in its wholly-owned G1 Entertainment LLC to a Russian firm. The deal is valued at $116 million, and was to be paid in Chinese yuan.
G1 Entertainment possesses a gaming license for Tigre de Cristal, which the Russian government has officially granted.
According to a recent dispatch, the proposed Russian buyer, a company named Limited Liability Company Dalnevostochnyj Aktiv, sent a notice of unilateral withdrawal from execution of the agreement.
The sale had led to a warning being issued by Hong Kong stock regulator that it may delist LET Group and Summit Ascent over concerns over the sale of its Russian assets, namely Tigre de Cristal.
LET Group was formerly known as Suncity Group, which was headed by jailed Macau gambling kingpin Alvin Chau. Following a change in control of LET Group in May 2022, any significant disposal is restricted for 36 months from the date of the change in control.
However, this restriction can be waived if the remaining group post-change in control meets the criteria outlined in the Rules.
The Hong Kong Securities and Futures Commission (SFC) has observed that following the completion of this substantial disposal, LET Group and Summit Ascent need to possess a business with a sufficient level of operations and assets of adequate value to sustain their operations, thus potentially jeopardizing their continued listing status under the Listing Rules.
Therefore the SFC has taken decisive action against Summit Ascent and its parent LET Group by suspending trading in their shares under the Stock Market Listing Rules, effective from February 14th, and both companies may could no longer be deemed suitable for listing.
