LET Group Holdings and its majority-owned subsidiary Summit Ascent Holdings said in dual filings overnight that they are continuing to look at opportunities to divest non-core assets, primarily a property development business in Miyako, Japan, where it purchased a plot of land in 2019.
The companies have previously stated similar plans to offload their interest in Russian casino resort Tigre de Cristal after a failed move early last year.
In an update on business operations filed late Thursday, Summit Ascent said, “The hotel and gaming operations of the Group in Russia continue to face significant challenges and uncertainties due to the ongoing and escalating Russia-Ukraine conflict, along with the associated sanctions levied against Russia.”
While the group has turned its attention towards a US$1.1 billion casino-hotel development in Manila’s Westside City, due to open in late 2025, it said it is “actively seeking opportunities to divest its non-core business of property development in Miyako Island of Japan, a strategic move intended to enhance the Group’s cash flow, despite no buyer [having] been secured as of yet.”
Development of the Manila project, added, LET Group, is “progressing as planned” with further contractors appointed since the company’s last quarterly update.
“Additional contractors are expected to be appointed in due course to facilitate the anticipated opening of the Main Hotel Casino in 2025,” it said.
Both LET Group and Summit Ascent remain suspended from trading on the Hong Kong Stock Exchange on the order of Hong Kong’s Securities and Futures Commission (SFC), which last year outlined concerns that the move by Chairman Andrew Lo to sell the company’s entire stake in Tigre de Cristal was made without the required approval of shareholders.
LET Group has since stated its intention to ensure its share are traded again although neither it nor Summit Ascent have yet published their FY23 financial results.
Lo has also resumed efforts to sell off its Russian interests, with Summit Ascent currently holding a 77.5% stake in Tigre de Cristal operator Oriental Regent. LET Group, formerly known as Suncity Group, owns 69.66% of Summit Ascent.
Lo assumed control of both companies following the arrest of former Suncity Group chairman Alvin Chau in late 2021.
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