Directors of Hong Kong-listed Summit Ascent Holdings and its majority owner LET Group Holdings have tendered their resignations en masse in reaction to a decision to sell off the company’s stake in Russian integrated resort Tigre de Cristal.
In a series of filings late Monday, Summit Ascent revealed the departure of five directors, including executive director and CEO David Chua, effective immediately and “due to their disapproval to a transaction which forms the subject matter of [an] inside information announcement of the company referred to in the trading halt announcement of the Company dated 10 January 2024, pending to be published by the Company.”
Aside from Chua, the other departing directors are Chiu King Yan, Lam Kwan Sing, Lau Yau Cheung and Li Chak Hun.
Another three directors have stepped down from LET Group citing the same reasons: Tou Kin Chuen, Dr Roderick Wu Kam Fun and John Lo Wai Tung.
Their mass departures leave Executive Director and Chairman Andrew Lo Kai Bong as the only remaining board member for both Summit Ascent and LET Group, with the companies stating they will begin a search for replacement directors.
While neither have revealed details of the transaction in question, a filing on the Taiwan Stock Exchange last week by Taiwanese firm Firich Investment Ltd revealed plans for Oriental Regent Ltd to sell 100% of its shares in G1 Entertainment LLC – the operating entity of Tigre de Cristal – to local Russian company identified as Dalnevostochniy Aktiv LLC for a total consideration of US$116 million.
Firich currently owns a 20% stake in Oriental Regent while Summit Ascent’s control of Tiger de Cristal comes via its 77.5% stake in Oriental Regent. LET Group, formerly known as Suncity Group, owns 69.66% of Summit Ascent.
It remains unclear why Lo and Summit Ascent have decided to sell off Tigre de Cristal pending the release of its aforementioned inside information announcement.
However, Summit Ascent previously halted development of Tigre de Cristal Phase 2 due to the conflict in Ukraine, which saw significant economic restrictions placed on Russia by the global community. The company cited a changed business environment and the need to generate value for shareholders for that decision.
It also flagged in March 2023 that it may consider seeking “strategic local partners” to operate Tigre de Cristal as a result of challenges brought about by the war.
Meanwhile, Summit Ascent has invested heavily into Suntrust Resort Holdings – the Philippines company currently developing a US$1.1 billion hotel and casino in Manila’s Entertainment City – and has stated its desire to invest even more in the future.
In August, Summit Ascent said it was “naturally inclined … to seek one of the best and one of the most rapidly growing emerging gaming markets in Asia – the Philippines.”
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