Hong Kong-based LET Group Holdings has finalized a $116 million deal to sell the licensee of its Tigre De Cristal Resort in Vladivostok, Russia. This decision was influenced by uncertainties stemming from the conflict between Ukraine and Russia. However, not everyone was on board with the sales contract.
After the agreement took effect on January 15, the company’s independent non-executive directors all submitted their resignations due to their disagreement with the sale. This departure leaves Andrew Lo Kai Bong, a casino investor, as the sole remaining chairman and director of both LET Group and its affiliate, Summit Ascent Holdings Ltd.
The sale involved Oriental Regent Ltd., a subsidiary of LET Group, selling the entirety of its shares in G1 Entertainment LLC to Russian entity Dalnevostochniy Aktiv LLC. This $116 million agreement will be paid in Chinese yuan and is set to be completed outside of Russia due to the sanctions imposed on the country.
LET Group and Summit Ascent justified the sale by citing “uncertainties arising from the ongoing Russia-Ukraine conflict and related sanctions imposed on the Russian Federation, which are adversely affecting the operations and prospect of G1 Entertainment.” They indicated that further announcements regarding the transaction will be made after thorough consideration and evaluation.
Despite the opposition from the independent non-executive directors, the sale is expected to benefit stakeholders, including Taiwan-based Firich Enterprises Co Ltd., which stands to raise $28 million in cash from the deal. Summit Ascent, which holds a 77.5 percent share in Oriental Regent, could capitalize significantly on the $116 million sale, potentially offsetting any losses suffered in the previous year.
In light of these developments, the company is poised to move forward with the sale of the Tigre De Cristal Resort, allowing it to navigate the challenges presented by the conflict between Ukraine and Russia.