GGRAsia – LET Group completes US$2.7mln sale of China mall op

LET Group completes US$2.7mln sale of China mall op

Oct 20, 2023 Newsdesk Latest News, Rest of Asia, Top of the deck

LET Group Holdings Ltd, a Hong Kong-listed investor in a number of Asian casino projects, says that an indirect wholly-owned subsidiary has completed the disposal of a mainland China business that runs malls in Zhejiang, a province in the east of the country.

The news about the sale of Dongyang Xinguang Pacific Industrial Co Ltd was in a Thursday filing by LET Group. It said the deal had been closed the previous day.

A September 21 filing by LET Group said the purchaser, Xinguang Yuancheng Stock Co Ltd, had agreed to pay CNY20 million (US$2.7 million) to acquire 100 percent of the target firm’s equity.

LET Group had said in that announcement the Zhejiang mall manager had been in a “continual loss making situation” since “May 2022,” and faced “fierce competition from online [sales] platforms”.

The disposal would mean LET Group could “avoid” having to “further inject working capital for the deteriorating business,” it stated in the September 21 announcement.

LET Group had stated the exercise would enable it to “focus its resources to develop its existing businesses”.

LET Group is the indirect controller of Philippine Stock Exchange-listed Suntrust Resort Holdings Inc, the developer of a casino hotel scheme at Westside City in the Philippine capital Manila.

Suntrust Resort reaffirmed in August a plan to launch operations at the property in the “fourth quarter of 2024”.

LET Group also controls Hong Kong-listed Summit Ascent Holdings Ltd, which has majority ownership of the Tigre de Cristal casino resort near Vladivostok in the Russian Far East.