Former SunCity Group risks delisting, receives warning from HK regulator

Jenny Ortiz February 16, 2024

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Former SunCity Group risks delisting, receives warning from HK regulator

Hong Kong’s Securities and Futures Commission (SFC) issued a warning to Summit Ascent and its parent company LET Group, formerly named SunCity Group, for potential delisting over concerns surrounding the sale of their Russian assets.

On Wednesday, the SFC suspended trading the shares of both firms under the Stock Market Listing Rules. The firms’ sale of their Russian assets amounted to $116 million (€107.8 million).

This transaction, flagged by the SFC on January 29th, involves a substantial asset indirectly owned by Summit Ascent through a 77.5 percent owned subsidiary.

Link to SunCity Group and Alvin Chau

The LET Group was previously named SunCity Group and formerly headed by jailed Macau ‘junket king’ Alvin Chau.

It was rebranded in 2022 with Andrew Lo at the helm, holding a majority stake in Summit Ascent.

The firms face disposal restriction

Following a change in control in May 2022, the firm is subject to disposal restriction for 36 months from the date of the change in control.

The restriction, however, can be waived if the remaining group post-change in control meets the criteria outlined in the Rules.

Moreover, the SFC has urged both LET Group and Summit Ascent to ensure that completion of the Very Substantial Disposal (VSD) is subject to shareholder approval and complies fully with regulations.

Both entities have yet to address these concerns.

Consequently, the SFC has deemed it necessary to suspend trading in LET Group and Summit Ascent shares to uphold market fairness, orderliness, and investor interests.

Majority of Summit Ascent’s board of directors resign

Last month, the majority of Summit Ascent’s board of directors resigned in protest against the company’s plans to exit the Russian casino market, which involved selling its shares in Tigre de Cristal, leaving Lo as the sole remaining director and chairman.

SiGMA Eurasia and SiGMA Africa – less than a month away

With less than a month until the highly anticipated SiGMA Africa event kicks off in Cape Town, South Africa on the 11th of March, the gaming industry is abuzz with excitement. Building on the success of its inaugural edition in Nairobi, Kenya, in January 2023, SiGMA Africa is strategically positioning itself at the forefront of Africa’s burgeoning gaming landscape. With the continent’s market poised for exponential growth, driven by a rapidly evolving digital ecosystem and increasing mobile connectivity, SiGMA Group recognizes the need to foster collaboration and innovation within the industry. By bringing together leading stakeholders and visionaries in gaming, SiGMA aims to catalyse progress and propel Africa towards a new era of prosperity and opportunity. As the countdown to the event begins, anticipation mounts for what promises to be a landmark gathering of gaming enthusiasts and innovators in the vibrant city of Cape Town.

The fourth edition of?SiGMA Eurasia?will once again be held at the InterContinental Dubai Festival City. Held between the 25 and 27 February 2024, the summit provides invaluable opportunities for attendees to network with industry professionals, gain exposure to the latest tech and innovations in the sector, meet key decision makers, and gain insight into new markets.??