Summit Ascent confirms sale of Tigre de Cristal license caused by uncertaintied due to Russia-Ukraine conflict

The majority-owned business of Summit Ascent Holdings Ltd. has publicly announced that it would sell G1 Entertainment LLC, the owner of the gaming license for the Tigre de Cristal casino resort in the Far East of Russia, for US$116 million.

G1 Entertainment’s business and prospects have been significantly impacted by “uncertainties arising from the ongoing Russia-Ukraine conflict,” which is the reason for the decision to proceed with the sale.

The deal will go through despite resistance from Let Group Holdings Ltd., the parent company of Summit Ascent, which is listed on the Hong Kong Stock Exchange. Notably, as required by market laws, Summit Ascent’s stock has been unavailable for trade on the Hong Kong Stock Exchange since January 11 until an insider information disclosure is released.

The notice also said that the majority of board members had indicated disagreement to the deal, but the decision to go forward with it had been made. Andrew Lo Kai Bong, a casino investor, is the only surviving director and chairman after Summit Ascent and LET Group declared on January 15 that their respective directors had resigned.

According to Summit Ascent, the Tigre de Cristal license holder’s transfer represents a “very substantial disposal” in terms of stock market criteria. A legally binding agreement for the sale was signed on January 15 between Dalnevostochniy Aktiv LLC, a Russian firm, and Oriental Regent Ltd, the seller.

The company’s financial statistics showed that it understood the current Russia-Ukraine situation would have a detrimental financial impact on G1 Entertainment. In an August filing, Summit Ascent revealed a loss of HKD16.1 million (US$2.1 million) for the first half of the year, which stands in sharp contrast to the HKD85.2 million profit of the prior year.

Summit Ascent concluded by saying that, after a thorough investigation and analysis of the situation, the company would make further statements as needed. Firich Enterprises Co Ltd, a Taiwanese company, announced the deal on January 10. In addition to Summit Ascent’s 77.5 percent stake in Oriental Regent, Firich Investment Ltd, a subsidiary, owns 20% of the company. It is anticipated that Firich Investment would make US$28 million from the deal.

Original story by: GGRAsia