Hong Kong-listed LET Group Holdings plans to sell off its shares in Tigre de Cristal, a hotel-casino in Russia. As recorded by the group’s HKEX announcement, the sale was announced by its Chairman and controlling shareholder, Andrew Lo Kai Bong, in an extraordinary general meeting (EGM) as part of its Disposal Plan.
Under the Disposal Plan, Oriental Regent, a LET subsidiary that owns the entire share of Tigre de Cristal via GI Entertainment, is required “to dispose of the entirety of the issued shares in G1 Entertainment ... or all the issued shares in Oriental Regent held by Summit Ascent.” The selling price “should be no less than $92.8m” and the buyer must be a “third party independent of LET, Summit Ascent or Oriental Regent.”
LET explained that the decision was necessary.
“The escalation in the Russia-Ukraine conflict has a negative effect on the motivation and choices for international tourists to freely travel into and out of Russia, which affects Tigre de Cristal’s customer base,” it stated in its HKEX disclosure document.
“The risks arising therefrom include the ongoing Russia-Ukraine military conflict, sanction risks … would impact on the Group’s ability to manage or monitor Tigre de Cristal’s operation. Any escalation of political or operational risks faced by Tigre de Cristal may also have a domino effect on other businesses of the company.”
Earlier during the Covid-19 pandemic, Summit Ascent had an 88% year-on-year decline in profits, due to the closure of Tigre de Cristal from 28 March 2020 to 15 July 2020.
