Oriental Regent to sell 100% of G1 Entertainment shares to Russian firm

Oriental Regent Ltd plans to sell Dalnevostochniy Aktiv LLC, a Russian company, 100% of the shares in its wholly-owned G1 Entertainment LLC for US$116 million.

Through this company, Summit Ascent Holdings Ltd manages the gaming and hotel operations at the Tigre de Cristal casino resort near Vladivostok in Russia.

The money for this deal is going to come from China. Currently, G1 Entertainment has a gaming license from the Russian government for Tigre de Cristal.

Firich Enterprises Co Ltd, a Taiwanese company that owns 20% of Oriental Regent via Firich Investment Ltd, a subsidiary, disclosed information on the sell-off. 77.5% of Oriental Regent is owned by Summit Ascent. A halt was placed on trading in the shares of Summit Ascent’s parent company, LET Group Ltd., as well as in its Hong Kong shares “pending the release of an inside information announcement,” the firm said.

With the sale of its interest in Oriental Regent, Firich said in a statement that it would get US$28 million in cash, eliminating any exposure to Russia. According to Firich, the transaction would cost the company somewhat less than US$18.4 million on its balance sheet in 2023.

In August, Summit Ascent filed a report with the Hong Kong stock market stating that it had lost HKD16.1 million (US$2.1 million) in the first half of 2023, as opposed to making HKD85.2 million in profit during the same period the previous year.

Original story by: GGRAsia