A prospective Russian buyer of the assets previously owned by incarcerated Macau gambling kingpin Alvin Chau is attempting to cancel the USD116 million deal.
According to a recent filing with the Hong Kong exchange, LET Group Holdings Ltd. and Summit Ascent Holdings Ltd. received notice from the buyer, Dalnevostochnyj Aktiv, expressing its intention to terminate the acquisition of G1 Entertainment.
G1 Entertainment holds the gaming license for the Tigre de Cristal resort in eastern Russia, which was indirectly owned by Summit Ascent through a subsidiary in which they held a 77.5% stake. LET Group holds a nearly 70% stake in Summit Ascent.
Both companies have stated they will seek legal advice regarding the termination notice.
Last week, Hong Kong’s securities regulator issued a warning that the two companies could face delisting due to the potential sale of assets, which could leave them lacking sufficient assets. As a result, trading of the two companies has been suspended pending further investigation by the regulator.
LET Group was formerly part of Chau’s gambling empire, the Suncity Group, before rebranding in 2022 under the leadership of Andrew Lo, a former Suncity executive. Staff Reporter
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