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LET Group’s Andrew Lo Revives Tigre de Cristal Sale

July 10, 2024 HongkongRussia Casino & HotelIndustry Updates

Andrew Lo Resumes LET Group’s Sale of Tigre de Cristal Amidst Stake Disposal Plans

Andrew Lo, Chairman and major shareholder of LET Group listed in Hong Kong, has recommenced efforts to divest the company’s entire stake in the Russian integrated resort Tigre de Cristal, situated in the Primorye Economic Zone near Vladivostok.

As per filings with the Hong Kong Stock Exchange, LET Group received a requisition notice recently, urging an Extraordinary General Meeting (EGM) to vote on a plan to sell its 77.5% interest in Oriental Regent. This entity wholly owns Tigre de Cristal’s operating entity, G1 Entertainment Limited Liability Company.

A similar Special General Meeting has been requested for Summit Ascent Holdings, a LET Group subsidiary holding the Oriental Regent stake. LET Group owns 69.66% of Summit Ascent, while Lo and Major Success Group Ltd., wholly owned by Lo, hold 72.07% of LET Group.

This move follows a previous unsuccessful attempt by Lo to sell Tigre de Cristal, where an agreement announced in January fell through after the Russian buyer withdrew. Subsequently, all directors except Lo resigned from LET Group and Summit Ascent, leading to Lo’s reprimand by Hong Kong’s Securities and Futures Commission for procedural lapses. Some of the resigned directors have since returned.

In its latest announcement, LET Group cited adverse impacts on its Russian casino operations due to the Ukraine conflict and subsequent sanctions on Russia by the US, EU, and others.

“The escalation in the Russia-Ukraine conflict has negatively impacted international tourism into and out of Russia, affecting Tigre de Cristal’s customer base,” LET Group stated.

“Sanctions have tightened, affecting enterprises like G1 Entertainment in Russia. Risks include ongoing military conflict, sanction implications, supply chain disruptions, and restrictions on fund transfers and human resources.”

Assuming shareholder approval, LET Group plans to negotiate and finalize the sale of Oriental Regent, ensuring the buyer is independent of LET Group and Summit Ascent, at a minimum price of US$92.8 million. This is 80% of the original US$116 million negotiated in the failed January deal.

The sale of Tigre de Cristal is seen as a strategy for LET Group to refocus on its land holdings in Japan and complete its $1.1 billion integrated resort project in Manila, Philippines.

Original Story by: IAG

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