LET Group expects to raise US$6.2m from share issuance

The company plans to pay off HK$19m (US$2.42m) in outstanding interest and to settle capital requirements for another loan agreement.

The Philippines.- LET Group Holdings Ltd, the former Suncity Group, has announced plans to raise up to HK$48.5m (US$6.2m) through the placement of 269m shares at a price of HKD 0.186 each. According to a filing on Friday (February 3), the placement shares will be taken up by at least six independent third parties.

The firm stated that HK$19.0m (US$2.42m) of the net proceeds will be used to repay the interest on an outstanding loan of HK$400m and HK$10.0m will be used to settle the arrangement fee for a revolving loan of HK$500m provided by subsidiary Summit Ascent Holdings Ltd. The remaining HK$19.5m will be used for general working capital.

Last November, Major Success Group acquired 5.018bn shares – approximately 75.25 per cent of all issued shares. The company controlled by Andrew Lo Kai Bong, a former business associate of ex-Macau junket boss Alvin Chau Cheok Wa, paid HK$0.069 (US$0.00892) per share after making an original offer of HK$0.0029 per share. 

LET Group has been interested in several casino projects in the Asia Pacific region, including Vietnam and the Philippines. Last year, the company said it aimed to devote resources to building world-class integrated resorts for Asia’s emerging middle classes. It sees the Philippines as the country with the highest potential to generate returns with minimal risk.

The company also has interests in hotel and gaming operations in Tigre de Cristal, an integrated resort in Russia’s Primorye Region, through Hong Kong-listed Summit Ascent.