GGRAsia – Summit takes on 2 junior stakes in Tigre de Cristal backer

Summit takes on 2 junior stakes in Tigre de Cristal backer

Nov 03, 2020 Newsdesk Latest News, Rest of Asia, Top of the deck

An offshore unit of a firm nearly 70-percent owned by Suncity Group Holdings Ltd has agreed to acquire in aggregate a further 7.5 percent interest in Hong Kong-registered Oriental Regent Limited, the promoter of the Tigre de Cristal casino resort (pictured) near Vladivostok in the Russian Far East. That will increase the firm’s stake in Oriental Regent to 67.5 percent.

The reason is that two minority shareholders in Oriental Regent – offshore entity Joyful Happiness Ltd, with 5 percent, and Hong Kong-registered Sharp Way Group Ltd with 2.5 percent – “do not intend to provide their respective shares of equity funding to Oriental Regent” when the latter looks to raise an additional US$65 million as capital for the Tigre de Cristal project.

Summit Ascent Russia Ltd, the relevant offshore unit of Suncity Group Holdings, is to pay Joyful Happiness the sum of US$228.315 for each the 7,000 shares in Orient Regent that the latter holds. Summit Ascent Russia will also acquire a just-over US$3.78-million loan owed by Oriental Regent to Joyful Happiness. The total consideration for these steps is to be just over US$5.38 million in cash.

Summit Ascent Russia is an offshore unit of Hong Kong-listed Summit Ascent Holdings Ltd, which in turn is a 69.66-percent owned subsidiary of Suncity Group Holdings.

A controlling shareholder of the latter firm is Alvin Chau Cheok Wa, the boss of Macau-based, privately-held junket brand Suncity Group.

With regard to Sharp Way, Summit Ascent Russia will take over 3,500 shares the former holds in Oriental Regent, plus a just over US$1.89-million shareholder loan made by Sharp Way to Oriental Regent.

The settlement with Sharp Way will be via “consideration CBs” to be issued by Summit Ascent Holdings upon completion. The instruments are convertible to conversion shares in Summit Ascent Holdings, at an initial conversion price of HKD3.50 (US$0.45153) per conversion share.

Joyful Happiness and Sharp Way are respectively described in a Friday filing by Summit Ascent Holdings as an “independent third party”.

Mr Chau was quoted in a press release issued jointly by Suncity Group Holdings and Summit Ascent Holdings, as saying: “The potential to acquire further stakes in Tigre de Cristal is a strong injection in confidence that both Suncity and Summit Ascent are fully motivated to drive up business volumes in Tigre de Cristal.”

Summit Ascent had said in an October 29 filing of unaudited highlights of its third-quarter performance that, in terms of average net monthly gaming revenues, net win amounts from Tigre de Cristal had recovered to 81 percent and 99 percent of first-quarter levels for mass-market tables and slots respectively. That was since the property had reopened on July 16 following a period of closure due to Covid-19.

The firm did not give figures for VIP performance, but noted that “rolling chip business was affected by the travel ban as the Russian borders remained closed”.