LET Group calls meeting on sale of Tigre de Cristal casino

A previous sale agreement fell through.

Hong Kong.- LET Group Holdings has issued a filing announcing that Andrew Lo Kai Bong, chairman and a director of the company, has called for an extraordinary general meeting (EGM) to pursue the sale of the company’s stake in Oriental Regent, the operator of Tigre de Cristal casino in Russia.

According to the filing, the company received a Requisition Notice on July 3 from Major Success Group, the majority shareholder with 72 per cent of shares, demanding the EGM. The company is being urged to implement its disposal plan, with the board of directors of Summit Ascent instructed to allocate resources for the sale as soon as possible.

Earlier this year, LET Group attempted to sell its shares in G1 Entertainment, the entity managing Tigre de Cristal, to Dalnevostochny Aktiv, a Russian entity, for US$116m. However, Aktiv pulled out of the deal, leading to the resignation of most directors of LET Group and Summit Ascent who opposed the sale.

Andrew Lo is now pushing for the sale at a reduced price of no less than US$92.8m, approximately 80 per cent of the previous offer. The proposed buyer remains a third-party independent of LET Group and Summit Ascent. He cited the conflict between Russia and Ukraine.

He said: “Any escalation of political or operational risks faced by Tigre de Cristal may also have a domino effect on other businesses of the company.”

Lo said the proceeds from the sale would fund a special dividend for Summit Ascent shareholders, equivalent to the share price before trading was suspended on the Hong Kong Stock Exchange in February. The remaining funds would be reinvested in the Westside City integrated resort project in Manila, in which LET Group holds a 51 per cent stake through Suntrust Resort Holdings.