Hong Kong’s securities regulator has warned it may delist two companies formerly headed by jailed junket mogul Alvin Chau over concerns about its USD116 million sale of assets in Russia.
Shares remain halted as the Securities and Futures Commission (SFC) said it was concerned LET Group Holdings and Summit Ascent Holdings had not complied with rules requiring shareholders’ approval of the deal, the regulator said in a statement Wednesday, as cited in a Bloomberg report.
The completion of the asset sale may leave both LET Group and Summit Ascent without sufficient assets to warrant their continued listing in Hong Kong, it said. The SFC said it has serious concerns about the conduct of the companies and their management, the report added.
LET Group was formerly part of Chau’s gambling empire Suncity Group before it re-branded in 2022 with Andrew Lo at the helm.
“Issues associated with Alvin Chau made its parent company’s junket business evaporate. Covid dragged tourist foot flow to Hoiana in Vietnam, and the company lost direction of its business in Vladivostok due to sanctions related to the Russia-Ukraine conflict,” Angela Hanlee, a senior gaming and hospitality analyst at Bloomberg Intelligence, as cited in the report. Staff Reporter
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