LET Group Holdings Inc, formerly known as Suncity Group, has sold off another asset by way of a dormant subsidiary as it looks to generate much-needed funds.
The company said in an overnight filing that it will sell off an entity called Faith Best Asia (HK) Ltd for a consideration of HK$19.95 million (US$2.55 million), with the buyer being an investment holding company called Great Promise Developments Ltd.
According to LET Group, Faith Best Asia is a wholly-owned subsidiary with no business operations and principally engaged in investment holding before cessation of business. It boasts assets to the value of RMB 19.86 million (US$2.72 million) but has booked losses of HK$8.4 Million (US$1.07 million) this year.
LET Group said it would record a pre-tax unaudited loss of approximately HK$2.40 million (US$307,000) as a result of the disposal, being the difference between the sale price and the subsidiary’s assets, but “Having considered that the process of dissolving the Target Company is time consuming and costly, the Directors are of the view that the Disposal would provide an opportunity for the Group to realise its investment in the Target Company.”
LET Group has been actively selling off assets in recent months to improve its cash position and help fund its Asian casino investments, which include its majority stake in a US$1.1 billion hotel and casino development in Manila’s Entertainment City, in Russia’s Tigre de Cristal and a 34% stake in Vietnam’s Hoiana.
Last month the group sold a subsidiary that leases mall space in mainland China’s Zhejiang Province, and earlier sold off plots of land located in Hokkaido and Okinawa in Japan, acquired in 2019.
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