Suncity Group to sell two groups of wholly-owned subsidiaries
The units will be bought by Great Promise Developments Ltd, a company located in the British Virgin Islands and controlled by a businessman named Zhong Jianhua.
Macau.- Suncity Group Holdings has revealed that it had reached an agreement to sell two wholly-owned subsidiaries for an aggregate consideration of HKD1.00 (US$0.13). The investment companies will be sold to Great Promise Developments Ltd, a company located in the British Virgin Islands and controlled by a businessman named Zhong Jianhua.
The company deemed the operation as an “opportunity for the group to meet its obligations to repay loans and interest associated with these companies”. The deal will allow it to recognise capital gains of approximately HK$127.8m (US$16m) upon closing.
In April, Suncity Group decided to terminate its travel business. The unit, which accounted for 12.6 per cent of the group’s total revenue in 2021, had been suspended since the winding up of locally-licensed junket operator Suncity Gaming Promotions Limited (SCGPCL) on December 1, 2021.
The company filed for dissolution following the arrest of its founder, Alvin Chau Cheok Wa, over cross-border gambling and money laundering accusations.
Suncity reported an HKD258.3m (US$33m) loss in 2021. Revenue from continuing operations, however, increased by 87 per cent from HKD181.8m to approximately HKD340.4m.
