GGRAsia – Summit Ascent buying EGMs for Russian casino

Summit Ascent buying EGMs for Russian casino

Jan 21, 2015 Newsdesk Latest News, Top of the deck, World

A subsidiary of Summit Ascent Holdings Ltd, a firm controlled by Macau casino investor Lawrence Ho Yau Lung (pictured), has entered into an agreement to purchase electronic gaming machines (EGMs) for a casino project in Russia’s Far East.

First Gambling Co of the East LLC (FGCE), a Russia-based unit of Summit Ascent subsidiary Oriental Regent, is buying 300 EGMs from Tiga Rus LLC, for a total consideration of US$3.2 million.

Tiga Rus is a subsidiary of Firich Enterprises Co Ltd, also an investor in the casino project, through the ownership of 25 percent of the capital of Oriental Regent Ltd. Oriental Regent, which is 60 percent owned by Summit Ascent, holds the entire equity interest in the casino resort planned for the Primorsky Integrated Entertainment Zone (IEZ), near Vladivostok.

Payment for the EGMs shall be made “after the commencement of operation of the casino in 12 equal monthly instalments,” Summit Ascent said in a filing to the Hong Kong Stock Exchange on Tuesday.

“This would give the casino access to quality gaming equipment with the advantage of reduced initial capital outlay.”

“It is intended that payment of the consideration for the Tiga equipment will be entirely funded by the internal resources of the Oriental Regent group,” it said.

The casino resort complex is expected to have 119 hotel rooms, 800 slot machines, 25 VIP gaming tables, 15 mass market baccarat tables and 25 mass market tables providing other table games. The casino is targeted to open in the last quarter of this year, Summit said in previous filings.

Taiwan-listed Firich Enterprises is described as “a leader in the manufacture, installation and maintenance of electronic gaming machines, multi-player gaming terminals, VLT and Lottery POS”.

“Its products are widely deployed in Macau, mainland China, Taiwan, Korea, the United States of America and a number of European countries,” Summit Ascent added in the filing.

According to Tuesday’s filing, Oriental Regent has also entered into a management services agreement with Tiga Gaming Inc, a company incorporated in Taiwan and owned by Firich Enterprises.