Suncity looking to increase stake in Summit Ascent to almost 75pct

Hong Kong-listed Suncity Group announced that it is looking to increase its directly and indirectly owned share in Summit Ascent from 24.7 per cent to about 75 per cent.

The listed arm of junket group Suncity currently directly holds a 2.73 per cent interest in the Russian gaming operator with its direct wholly-owned
subsidiary Victor Sky holding 22.01 per cent.

According to a filing with the Hong Kong Stock Exchange, on June 1 Victor Sky conditionally agreed to underwrite about 2 million shares in Summit Ascent for a subscription price of about HK$0.6 per share and an aggregate consideration of more than HK$1.2 billion.

If the deal goes through, the financial results of Summit Ascent will be accounted for as a subsidiary of Suncity and will be consolidated in its financial statements.

An extraordinary general meeting of Suncity will be held for the purpose of considering and, if thought fit, approving the Acquisition, with Suncity’s Executive Director, Alvin Chau, to abstain from voting as he is also the chairman and non-executive director at Summit Ascent.

Summit Ascent is responsible for the Tigre de Cristal integrated resort in Vladivostok, with a Phase 2 expansion set to double its VIP and mass gaming tables, slots, and lodging capacity to be completed in 2022.

Suncity indicated that the deal could provide a channel through which the funding needs of Summit Ascent for its business development and investment can be met.