Date
22 September 2017
Lawrence Ho-backed Summit Ascent plans to take a controlling interest in a Russian gaming project. Photo: ??
Lawrence Ho-backed Summit Ascent plans to take a controlling interest in a Russian gaming project. Photo: ??

Summit Ascent seeks control of Russian gaming project

Lawrence Ho-backed Summit Ascent Holdings Ltd. (00102.HK) plans to take a controlling stake in a casino and resort project in Russia, spending US$20.24 million to buy 14 percent of the project and take its total interest to 60 percent, the company said in a stock exchange filing.

The listed company aims to raise up to HK$603 million (US$77.77 million) for the purchase and related capital expenses from a top-up placement of as many as 52 million shares at HK$11 to HK$11.60 apiece, according to a term sheet obtained by the Hong Kong Economic Journal.

The placement price represents a discount of 9.8 percent to 14.5 percent, compared with the closing price Wednesday of HK$12.86.

Summit Ascent said in the filing that Quick Glitter, which is also controlled by Ho, son of Macau gaming magnate Stanley Ho, will sell US$35 million worth of the company’s shares to Taiwan-listed Firich Enterprises Co. Ltd.

But the filing did not specify whether the share sale is included in the on-going placement.

The Russian project is expected to run 119 hotel rooms, 800 slot machines, 25 VIP gaming tables, 15 mass market baccarat tables and 25 mass market tables providing other table games in its first operating year. The first phase of the project is due to be up and running by the end of this year, according to the Wall Street Journal.

Work on the basic structure of the project has been completed, the filing said.

– Contact HKEJ at [email protected]

JP/SK

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