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Summit Ascent shareholders pave way for Suncity to take majority stake

Shareholders of Hong Kong’s Summit Ascent Holdings – the majority owner of Russian integrated resort Tigre de Cristal – have voted in favor of multiple resolutions that will see Suncity Group significantly increase its stake in the company.

A total of five resolutions were easily passed at a Special General Meeting held on Monday, including a rights issue that will see Suncity’s stake grow from its current 24.74% to as much as 69.89% at a cost of HK$1.24 billion (US$160 million). Around 2.73% of that would be held directly by Suncity and 67.16% by its wholly-owned subsidiary, Victor Sky Holdings Ltd. Suncity has already voted in favor of the transaction.

Shareholders also agreed for Summit Ascent to use some of those proceeds to subscribe to HK$847 million (US$109.3 million) of convertible bonds in SunTrust Home Developers – a Suncity subsidiary listed on the Philippine Stock Exchange and set to develop a US$800 million hotel and casino at Westside City Resorts World in Manila.

Summit Ascent had previously stated that the remaining funds from the rights issue will be used for the Phase II development of Tigre de Cristal and for general working capital.

The Phase II development in Russia will cost a total of US$200 million of which the company will input US$120 million based on its 60% interest in Tigre de Cristal operator Oriental Regent.

“This new integrated resort is expected to double the Group’s VIP and mass gaming tables, slots, and have at least twice the lodging capacity of the existing property, and will include four restaurants and bars, additional retail offerings, and an indoor beach club and spa,” Summit Ascent said last month.

“The Phase II development of Tigre de Cristal will place the Group in a better position to attract and retain customers, especially when other casino operators in the IEZ Primorye open for business in the near future.”

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