Hong Kong securities regulator tests Glastiger casino exit permit

The Hong Kong Securities and Futures Commission (SFC) said in a statement on Wednesday that it was investigating publicly traded institutions LET Group Holdings and Summit Ascent Holdings over possible violations of regulations regarding “the sale of assets in Russia for $116 million on January 29, 2024.

It also confirmed the suspension of each company’s stock trading pending further notice. The two companies cited SEC action in their own presentation to the stock exchange on Wednesday.

Summit Ascent on Jan. 17 confirmed that its majority-owned subsidiary would sell G1 Entertainment LLC, the gaming licensee of Tigred Crystal Casino Resort (pictured) in Russia’s Far East, for US$116 million. It cited “uncertainty arising from the ongoing Russia-Ukraine conflict.” The news was first informed in a Jan. 10 filing by the Taiwanese company, which held a stake in the Summit Ascent subsidiary, Oriental Regents Limited, related to the Russian license.

Hong Kong’s SFC noted in an update on Wednesday that the assets involved were “indirectly held by Summit Ascent through its 77.5% owned subsidiary.”

Summit Ascent’s shares have been suspended since Jan. 11 on the Hong Kong Stock Exchange. Shares of Summit Ascent’s parent company, LET Group, have also been suspended since the same day.

In an announcement Wednesday, the Securities and Futures Commission said the sales contract relating to the highly significant disposition had been executed and completed without “the necessary approval of shareholders”.

This was the basis for the deal to be “approved by an unapproved vote representing at least 75% of the votes cast by unprofitable shareholders at the meeting and no more than 10% of votes attached to all unprofitable shares.”

Starting Jan. 15, all but one of Summit Ascent’s six directors resigned after “disapproving” the deal. The move left local casino investor Andrew Locai Bongman as director and chairman.

The same degree of departure occurred at LET Group, leaving only Mr. Ro as chairman and executive director.

SFC said it had asked both companies to “resolve concerns” about the Russia deal. But it added: “Neither company has responded to SFC.”

The regulator noted that “SFC also has serious concerns about the actions and management of both companies.”

BY: 안전놀이터

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