Suncity and Summit Ascent shares suspended from trading
The shares of Suncity Group Holdings and its Summit Ascent division were suspended from trading on Thursday after an announcement that an associate of its controlling shareholder may have a loan default.
Macau.- Suncity Group Holdings and Summit Ascent Holdings Ltd have announced the suspension of their shares from trading. The suspension is because an associate of the controlling shareholder of the companies may have a possible loan default.
The two companies warned in a statement to the Hong Kong Stock Exchange that securities might be enforced but did not provide further details. The stock prices of both companies had fallen after the arrest of Alvin Chau Cheok Wa on cross-border gambling and money laundering accusations.
Suncity stocks plunged by 48 per cent to HK$0.13 after the arrest. Summit Ascent was trading at US$0.15, a drop of nearly 70 per cent. Suncity had previously warned that if the support of some of the controlling shareholders’ contacts is lost, Chau’s arrest will have a negative impact on the group’s revenue.
From December 1, Suncity Group Holdings decided to close all of its VIP rooms in Macau until further notice.
Alvin Chau has submitted his resignation following his arrest. Suncity said the CEO’s arrest may affect the income of its tourism-related business but should not have a significant impact on the group and its ability to do normal business.
It said that, as far as it knows, no other group units or employees are being investigated for illegal gambling and money laundering activities.
The company said in a statement: “In the event that the group loses the support of Mr Chau for whatever reason, the financial position, business and operation of the group will be adversely affected.”
In the six months to the end of June, 72.5 per cent of Suncity’s revenue came from the Tigre de Cristal resort in Vladivostok, 18.1 per cent came from tourism-related businesses, and 8.5 per cent came from the operation of Chinese shopping malls. It received 0.9 per cent from management consulting services.
