Hong Kong-listed Summit Ascent sells its stake to Russian firm

Lea Hogg January 12, 2024

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Hong Kong-listed Summit Ascent sells its stake to Russian firm

Summit Ascent Holdings, listed on the Hong Kong Stock Exchange, is set to offload its entire 100 percent stake to a local Russian firm.

Impact on Summit Ascent’s Russian businesses

Summit Ascent is set to exit the Russian casino market, marking a substantial shift in the company’s strategic direction. The subsidiary oversees the Tigre de Cristal integrated resort. The news surfaced in a Wednesday night filing on the Taiwan Stock Exchange by Taiwanese firm Firich Investment Ltd.

According to details in the filing, Oriental Regent Ltd, a subsidiary of Summit Ascent, is in the process of selling its complete 100 percent ownership in G1 Entertainment LLC – the operating entity of Tigre de Cristal. The buyer is identified as Dalnevostochniy Aktiv LLC, a local Russian company.

The transaction is valued at a total consideration of US$116 million, marking a significant shift in Summit Ascent’s strategic business direction.

While both LET Group (formerly Suncity Group) and Summit Ascent Group entered a trading halt on Thursday, pending an inside information announcement, the precise details were not available at the time of writing. Firich Investment Ltd, however, stated in its filing that it anticipates recovering US$28 million from the sale of its stake in Oriental Regent, leading to a net loss of US$18,390. This move is framed as a strategic decision to mitigate exposure in Russia.

Focused investment in the Philippines as Tigre de Cristal Phase 2 halts

Summit Ascent had previously suspended the development of Tigre de Cristal Phase 2 due to the conflict in Ukraine, which resulted in severe economic restrictions on Russia. Citing a changed business environment and the need to generate value for shareholders, the company sought alternative strategies. In March 2023, it hinted at considering “strategic local partners” to operate Tigre de Cristal amid challenges arising from the war.

Simultaneously, Summit Ascent has directed significant investments into Suntrust Resort Holdings, a Philippine company working on a USD 1.1 billion hotel and casino project in Manila’s Entertainment City.

The company has expressed a keen interest in furthering its investments in the dynamic gaming market of the Philippines. This move reflects Summit Ascent’s strategic realignment in response to geopolitical challenges and its active effort to explore new opportunities in the Asian gaming industry.

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