GGRAsia – Andrew Lo raises offer price for ex Suncity listco shares

Andrew Lo raises offer price for ex Suncity listco shares

Sep 15, 2022 Newsdesk Latest News, Philippines, Rest of Asia, Top of the deck

Parties acting on behalf of a company controlled by Andrew Lo Kai Bong, a former business associate of ex-Macau junket boss Alvin Chau Cheok Wa, have agreed to meet the greatly-increased HKD0.0690 (US$0.00892) purchase price for the balance of shares in the former Suncity Group Holdings Ltd, as recommended recently by Hong Kong’s Takeovers and Mergers Panel.

A Wednesday filing to the Hong Kong Stock Exchange by the firm now known as LET Group Holdings Ltd, added that on such basis, it had asked for a resumption of trading with effect from 9am on Thursday (September 15). That request has been granted, according to a notice on the bourse’s website. The firm’s stock had been suspended from trading since August 12.

The Wednesday announcement said that the offeror – Major Success Group Ltd, a British Virgin Islands firm whose shares are wholly controlled by Mr Lo – would at the close of a deal, “conduct a review of the financial position and operations of LET in order to formulate a long-term strategy for LET and explore other business/investment opportunities for enhancing its future development and strengthening its revenue bases”.

But the filing added: “As at the date of this joint announcement, the offeror has not identified such investment or business opportunities.”

In the background of the company, is that Star Soul Investments Ltd, a British Virgin Islands firm wholly owned by Mr Chau, a former chairman of Suncity Group Holdings, is a borrower against the group. The Suncity listco has in its lifespan been interested in a number of casino projects in the Asia-Pacific region, including in Vietnam and the Philippines.

Star Hope Ltd, another BVI, that had been controlled by Mr Chau, had been issued HKD6.0 billion in 5.00-percent perpetual securities by the now-LET Group.

Mr Chau – former boss of privately held Macau junket brand Suncity Group – is currently detained in Macau awaiting trial on unrelated allegations of operating illegal gambling.

Wednesday’s filing by LET Group stated that Mr Lo’s side “intends to continue the existing businesses of LET”.

Though it further noted that given that obligations on some convertible bonds – and a promissory note in the principal amount of HKD303.0 million – had entered a state of default as of August 29, “the auditors of LET had issued a disclaimer opinion for the financial year ended 31 December 2021 due to uncertainties relating to going concern”.

Consequently, the offeror would “procure LET to consider disposing of its valuable assets rigorously and/or refinancing from third parties”.

It had been announced in July that the controlling interest in the-then Suncity Group Holdings would make an unconditional, mandatory cash offer – as required under exchange rules – for up to the circa 25 percent of the firm that it did not already hold.