Foreign ownership in Suntrust Resort may increase to 65.95%

If convertible bonds issued to Summit Ascent are converted to shares, foreign ownership will increase from 51.34 per cent.

The Philippines.- Foreign ownership of casino operator Suntrust Resort Holdings will increase from 51.34 per cent to 65.95 per cent if convertible bonds issued to Summit Ascent Holdings are converted into shares.

A week ago, Summit Ascent issued a company filing noting that Suntrust Resort Holdings had failed to pay interest on convertible bonds issued in 2020. The bonds had a total value of HK$794m (US$101.66m), with a 6 per cent coupon rate for an initial term of 5 years extendable for a further 5 years and convertible into shares of Suntrust Resort Holdings.

Suntrust is currently in discussions with Summit Ascent regarding the amount due. The conversion period can be extended by up to 10 years from the issue date of the bonds.

Assuming the shares are converted, the free float would change from 14.33 per cent to approximately 10.03 per cent. It is said that the conversion shares will be issued initially at PHP1.80 per share upon conversion, subject to adjustment provisions.

Suntrust, which is 51 per cent owned by LET Group, is the developer of the Westside integrated casino resort in Paranaque City. The project will incorporate 400 hotel rooms, a casino with approximately 400 gaming tables and 1,200 slot machines for both mass and VIP markets. 

The company originally hoped for a 2023 opening, but in November that was pushed back to 2024.