Asian junket behemoth Suncity Group Holdings Limited has reportedly announced that one of its subsidiaries has agreed deals to acquire a further 7.5% stake in Oriental Regent Limited and take its combined interest in the firm up to 67.5%.
According to a report from GGRAsia, the target firm is engaged in the promotion of eastern Russia’s Tigre de Cristal casino resort with the two purchases to be conducted by Summit Ascent Russia, which is a subordinate of Hong Kong-listed Summit Ascent Holdings Limited. The source detailed that Suncity Group Holdings Limited owns a 69.6% stake in this latter enterprise under the control of its Chairman, Alvin Chau Cheok Wa, and will be buying the additional stakes from current holders Joyful Happiness Limited and Sharp Way Group Limited.
Purchase particulars:
Suncity Group Holdings Limited reportedly explained that Summit Ascent Russia has arranged to pay Joyful Happiness Limited approximately $1.59 million for the 7,000 shares it holds in Oriental Regent Limited. The Hong Kong-headquartered giant purportedly revealed that its subordinate is to moreover assume control over an outstanding loan worth around $3.78 million loan to take the aggregate value of this transaction up to about $5.37 million.
Share swap:
For the 2.5% stake in Oriental Regent Limited held by Sharp Way Group Limited and Suncity reportedly declared that it has agreed to take over a loan worth roughly $1.89 million and allow the current proprietor to swap its holding for shares in Summit Ascent Holdings Limited.
Optimistic objective:
Located in Russia’s casino-friendly Primorye Integrated Entertainment Resort zone, Tigre de Cristal reportedly opened some 30 miles north of the port city of Vladivostok in 2015 and currently features a large casino complete with in excess of 760 slots as well as almost 70 gaming tables. The Siberian venue is purportedly currently involved in revising plans for a $200 million expansion that is expected to double the size of its gaming floor while additionally adding a range of more family-friendly amenities such as an indoor beach club and convention facilities.
Financial fidelity:
Suncity Group Holdings Limited reportedly proclaimed that it opted to acquire the interests held by Joyful Happiness Limited and Sharp Way Group Limited after the pair made it known that they ‘do not intend to provide their respective shares of equity funding’ as part of Oriental Regent Limited’s campaign to raise some $65 million in enlargement capital.
Reportedly read a statement from Chau…
“The potential to acquire further stakes in Tigre de Cristal is a strong injection in confidence that both Suncity Group Holdings Limited and Summit Ascent Holdings Limited are fully motivated to drive up business volumes in Tigre de Cristal.”