Hong Kong-listed Suncity Group Holdings Limited is planning to increase its stake in the Vladivostok integrated resort, Tigre de Cristal, operated by Russian gaming company Summit Ascent from 60 to 67.5 per cent after the share acquisitions from two minority shareholders of Oriental Regent Limited.
The group is also considering to possibly expand its share to approximately 89.29 per cent if Summit Ascent is the only subscriber of the proposed new share issue of ORL
Suncity recently increased its stake in Summit Ascent from approximately 24.74 per cent to approximately 69.66 per cent.
‘The potential to acquire further stakes in Tigre de Cristal is a strong injection in confidence that both Suncity and Summit Ascent are fully motivated to drive up business volumes in Tigre de Cristal,’ the Chairman of Suncity and SummitAscent, Alvin Chau indicates in the joint statement.
‘Besides, the outstanding recovery post-closure was as astounding as it seem during one of the worst business challenges in this pandemic – a solid proof that we could sustain in hard times with local businesses only’
According to the company planning and design of Tigre de Cristal Phase II is ‘well underway’ and each shareholder of ORL should pay for its respective share of capital expenditure to build Phase II.
The master plan of Phase II is to double the size of Phase I, as well as tripling the number of hotel rooms.
‘The share acquisitions, through convertible bonds (5-year zero-coupon at a conversion price of HK$3.50 per conversion share) and cash, by Summit Ascent, as well as the proposed new issue of ORL, can be interpreted as a strong support from the major shareholder Suncity. This is also an indication that regardless of Tigre de Cristal’s existing shareholders’ financial statuses, Phase II will go ahead from blueprint to brick and mortar as planned,’ the joint statement indicated.
Since it’s re-opening Tigre de Cristal is said to have already turned EBITDA-positive in August and September thanks to its mass table and slot businesses, with slot handle recovering and even outperforming the pre-COVID average and mass table drop
recovering d to 96 per cent of the pre-pandemic average.
Suncity is also the controlling shareholder of Suntrust Home Developers, Inc. who is developing the Westside City Integrated Resort in the heart of Entertainment City in Manila, the Philippines, and operates the Hoiana integrated resort in Central Vietnam.