Summit Ascent Holdings Ltd has announced that it will look to raise HK$297 million via the placing of newly issues shares in order to fund the expansion of its Russian integrated resort, Tigre de Cristal.
According to a Hong Kong Stock Exchange filing overnight, Summit Ascent will place up to 300,000 shares at a price of HK$1.01 per share, representing a 19.20% discount to the closing price of HK$1.25 per share at close of business on Thursday. The shares represent 19.95% of issued share capital at the present time and 16.63% of issued share capital once the shares have been placed, the company said.
Once complete, the stake held by majority shareholder Suncity Group Holdings Ltd and its wholly-owned subsidiary Victor Sky Holdings Ltd will be reduced from 29.68% to 24.74%
Explaining the reasons for the placement, Summit Ascent said, “Assuming that all the Placing Shares are fully placed, the estimated gross proceeds and net proceeds (after deducting the placing commission and other related expenses and professional fees) from the placing will amount to HK$303 million and approximately HK$297 million, respectively.
“The company intends to utilize the net proceeds to further develop the hotel and gaming business in the Integrated Entertainment Zone in the Russian Federation.”
Suncity acquired a majority stake in Summit Ascent from Taiwan’s First Steamship Company Limited in April.
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