LET Group faces upheaval: Directors resign, trading suspension persists

LET Group Holdings, a Hong Kong-listed company, is embroiled in a series of developments that have shaken its corporate leadership and operations. The resignation of two independent non-executive directors, coupled with the ongoing trading suspension and legal action by the Securities and Futures Commission (SFC), have raised concerns about the company’s ability to address the issues and resume trading.

According to a filing with the Hong Kong Exchange, the sudden departure of Tou Kin Chuen and John Lo Wai Tung, effective immediately on Nov. 5, has left the company’s board with only two directors, one of which is its chairman, Andrew Lo Kai Bong. The resigning directors cited their inability to make meaningful contributions towards the company’s efforts in resuming the trading of its shares.

The trading suspension, imposed by SFC in February, was due to concerns that Lo attempted to sell the company’s entire stake in the Russian casino-resort Tigre de Cristal without obtaining necessary shareholder approval. A previous filing stated that it has initiated legal action against Lo, alleging the deliberate disregard of applicable Listing Rules and the Code on Takeovers and Mergers.

Prior to SFC’s action, five of the six board members had resigned in protest against the attempted sale of Tigre de Cristal, leaving Lo the sole member until the return of three directors in May. While the company has expressed intentions to enable the trading of its shares again, neither LET Group nor its subsidiary, Summit Ascent, have released their FY23 financial results as of now.

Despite the ongoing turmoil, LET Group, previously known as Suncity Group, retains a 69.66% stake in Summit Ascent, which in turn holds a 77.5% stake in Oriental Regent, the operator of Tigre de Cristal. Lo took control of both LET Group and Summit Ascent after the arrest of former Suncity Group chairman Alvin Chau in late 2021, which has further complicated the company’s situation. Victoria Chan