Suncity Group Holdings Ltd has confirmed that its Executive Director Andrew Lo Kai Bong has become the company’s new majority shareholder after assuming a 74.98% stake previously held by former Chairman Alvin Chau.
Although IAG reported recently that Lo had assumed control of the company, Chau’s interest had been in some limbo after lenders demanded repayment of a HK$300 million loan just weeks after the former Chairman’s arrest in late November. Chau – who remains in custody in Coloane Prison on charges of alleged criminal association, illegal gambling and money laundering – stepped down as Chairman of both Suncity Group and Summit Ascent in early December.
Claiming that Chau’s arrest constituted an event of default, the lenders subsequently exercised their enforcement rights on the securities charged and put them out to tender.
However, Suncity confirmed in an overnight filing that Lo, via his wholly-owned company Major Success Group Limited, has been named the successful bidder and therefore assigned the outstanding together with all of rights under the Facility Agreement.
Upon completion of the transaction, Lo and parties acting with him now control 74.98% of Suncity Group, but will also be required to make an offer for all issues shares in the company as required under Hong Kong’s Takeovers Code.
According to Suncity, Lo has indicated that he will refer the issue of what constitutes an appropriate offer price to the Takeovers and Mergers Panel for determination, as it is “a particularly novel, important or difficult point at issue.”