Suncity Group Holdings Ltd has revealed that its majority-owned subsidiary Summit Ascent Holdings will increase its stake in the operating entity of Russian casino resort Tigre de Cristal from 60% to 67.5% after acquiring shares from two minority shareholders.
And that stake could rise to almost 90% pending the results of a proposed new share issue by the entity as part of fundraising efforts for the Phase II development of Tigre de Cristal.
In an announcement, Suncity revealed that Summit Ascent – of which it holds a 69.66% interest – will boost its stake in Oriental Regent Limited (ORL) to 67.5% via a combination of cash and convertible bonds paid to minority shareholders. The acquisition is to include 5% from a company called Joyful for around US$5.4 million and 2.5% from another named Sharp Way or US$3 million.
Summit Ascent could subsequently increase its stake up to 89.29% should it prove to be the only subscriber of the proposed new issue of ORL shares.
Both initiatives, Suncity said, “can be interpreted as a strong support from the major shareholder Suncity. This is also an indication that regardless of Tigre de Cristal’s existing shareholders’ financial statuses, Phase II will go ahead from blueprint to brick and mortar as planned.”
Alvin Chau, Chairman of both Suncity Group and Summit Ascent, said, “The potential to acquire further stakes in Tigre de Cristal is a strong injection in confidence that both Suncity and Summit Ascent are fully motivated to drive up business volumes in Tigre de Cristal.
“Besides, the outstanding recovery [of Tigre de Cristal] post-closure was as astounding as it seems during one of the worst business challenges [resulting from] this pandemic – solid proof that we can sustain in hard times with local business only. Both Suncity and Summit Ascent will continue to tap into the under-served Korean and Japanese markets in the future.”
Suncity also revealed more information on its plans for Phase II, most notably a state-of-the-art indoor beach club described as a place where “a tropical indoor beach and snowy outdoors could co-exist in winter, separated by a glass panel.
“It will become a sense of place where electrifying beach events can happen all-year-round in Primrosky Krai, pushing the boundaries of imagination of what one could be doing during icy-cold winters,” Suncity said.
Phase II will double the total size of Tigre de Cristal and triple the number of hotel rooms, with Suncity noting there are little restrictions on how many gaming tables and slot machines allowed under its casino license.
“The sky is the limit on how Suncity could assist in driving business volumes to Tigre de Cristal, especially taking into the account that Suncity will be setting up a direct VIP business line where high rebates originally offered to junkets could be kept within Tigre de Cristal, a proposition not being made possible without an attractive gaming tax regime,” the company said.