Suncity Group Holdings has increased its stake in Summit Ascent Holdings after the operator acquired unsubscribed shares issued by Summit Ascent.
The move cost $160m and increased Suncity’s shares in the other company from 25% to 70%. Summit Ascent reported the acquisition raised close to HKD1.62bn ($208.8m) in total.
Summit Ascent, which is a majority owner of Tigre de Cristal casino in Russia, will be considered a subsidiary and its financial statements will be consolidated with Suncity ones.
Suncity is planning to expand Tigre de Cristal as part of the casino’s Phase II, which would double the number of the gaming tables and slot machines in the venue, as well as increase lodging capacity.
A statement said: “Summit Ascent’s financial stability as a cash-rich, zero-debt listed company allows Summit Ascent to plan, build and operate Tigre de Cristal phase two with utmost confidence.”
The estimated cost of the expansion is $200m.
The company remains positive it can increase the casino’s profits and has plans to open a new VIP room when the global COVID-19 restrictions ease, adding: “Suncity has considerable expertise, the database and the operating experience required to grow Summit Ascent’s revenue.”
Suncity Group chairman Alvin Chau said: “Gradually we are paving the way for Suncity to be a leading integrated resort operator and developer in Asia. As more Suncity integrated resorts are on their way, I am convinced that Suncity will become the most iconic entertainment name amongst Asia’s integrated resort scene.”