Suncity listco majority stake owners to make offer on rest

Jul 07, 2022 Newsdesk Latest News, Rest of Asia, Top of the deck  

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Stocks respectively of casino investor Suncity Group Holdings Ltd, and of an associated firm, Summit Ascent Holdings Ltd, an investor in a Russian casino complex, resumed trading on the Hong Kong Stock Exchange at 9am on Thursday.

It followed an announcement on Wednesday, after trading, that the people controlling 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 they do not already hold.

Share trading in that firm and in Summit Ascent had been suspended since May 13, pending an announcement in relation to inside information as defined under the bourse’s takeovers, mergers and share buy-back rules.

Andrew Lo Kai Bong, a Suncity Group Holdings executive director, and some associates together control 74.98 percent of Suncity Group Holdings. Mr Lo is now the main lender to Suncity Group Holdings, after a HKD300-million (US$38.2-million) loan was assigned to him by previous creditors of the group.

Mr Lo also has a controlling stake in Summit Ascent, which in turn controls the Tigre de Cristal casino resort, located in Primorye, in the Russian Far East.

Suncity Group Holdings runs and develops, via connected firms, casino resorts in the Asia-Pacific region.

Mr Lo acquired controlling shares in the latter firm with effect from May 13, according to transaction records filed to the Hong Kong bourse.

The exercise followed the full disposal of controlling shares co-held by Suncity Group Holdings’ former chairman Alvin Chau Cheok Wa and his business partner Cheng Ting Kong, via an entity called Fame Select Ltd. Prior to that, Mr Chau and Mr Cheng had controlled 74.85 percent of Suncity Group Holdings, via Fame Select.

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