Hong Kong panel says offer for LET Group Holdings too low

According to the Takeovers and Mergers Panel at Hong Kong’s Securities and Futures Commission, Major Success Group Ltd must offer HK$0.069 per share for the company.

Hong Kong.- The Takeovers and Mergers Panel at Hong Kong’s Securities and Futures Commission has concluded that Major Success Group must up its offer to acquire LET Group Holdings, the company formerly known as Suncity Group Holdings Limited. It says the company must pay HK$0.069 per share instead of the quote of HK$0.0029 per share.  

The panel noted that the quoted price for the deal was 95 per cent below the closing price on May 12, 2022, which was HK$0.056 per share.

It also noted that Andrew Lo Kai Bong is the “ultimate beneficial owner” of Major Success Group. Previously. He was a business associate of Alvin Chau Cheok Wa, the former chairman of Suncity Group Holdings who has been indicted for money laundering and allegedly founding and leading a criminal group following his arrest in November.

In May, Alvin Chau Cheok Wa transferred his controlling stake in both Suncity Group and its majority-owned Summit Ascent Holdings to the company’s executive director Andrew Lo Kai Bong.

See also: Alvin Chau trial postponed to September 19

LET Group Holdings revenue up 32% in H1

LET Group Holdings has reported that revenue from continuing operations increased by 32 per cent to approximately HK$190.4m (US$24.2m) in the first half of the year. Gross profit from continuing operations increased by 132 per cent to approximately HK$93.7m with a loss of HK$252.9m.

Consolidated adjusted EBITDA from continuing operations was approximately positive HK$50.6m versus negative HK$8.1m for the six months ended June 30. LET Group Holdings said that during the first half of 2022, social distancing and travel-related measures in the Group’s operating and customer markets impacted its overall operations.