Suncity Now Holds 69.66% of Summit Ascent After Rights Issue
Suncity Group Holdings Limited (1383.HK) and Summit Ascent Holdings Limited (102.HK), on October 14, 2020, announced jointly that Suncity Group has increased its stake in Summit Ascent from approximately 24.74% before the rights issue to approximately 69.66% by being the underwriter of the rights issue of Summit Ascent. Hereafter, the financial results of Summit Ascent will be accounted for as a subsidiary of Suncity Group and will be consolidated in the financial statements of Suncity Group. As of October 14, 2020, two integrated resorts are currently up-and-running under Suncity Group, namely, HOIANA in Vietnam, and, Tigre de Cristal in Russia. The third integrated resort, Westside City Integrated Resort Project, based in the Philippines, is on its way.
After becoming its controlling shareholder, Suncity Group will have every reason to drive businesses in Summit Ascent. As one of the fastest-growing integrated resort operators in Asia, Suncity Group acquires, develops, and operates integrated resorts in Asia, creating a network effect for the entertainment locations where Suncity Group operates. Suncity Group has considerable expertise, the database and the operating experience required to grow Summit Ascent’s revenue. Since the grand opening of Tigre de Cristal in November 2015, Tigre de Cristal has a track record of delivering strong local businesses in the past, thanks to the solid contributions by its local entertainment businesses. The segment has shown exemplary resilience in times of adversity such as temporary closure due to COVID-19. Given the proximity of Vladivostok to major Asian tourism markets such as South Korea and Japan, Suncity Group will help to target South Korean and Japanese tourists to Tigre de Cristal.
Suncity Group is confident of the long-term prospects of Summit Ascent. Not only does the license granted by the Russian government lasts for an indefinite period of time, but also Tigre de Cristal benefits from lower tax than other jurisdictions, such as Macau. In addition, Summit Ascent’s financial stability as a cash-rich, zero-debt listed company allows Summit Ascent to plan, build and operate Tigre de Cristal Phase II with utmost confidence.
Summit Ascent possesses the development rights on two adjacent parcels of land, namely Lot 9 and Lot 10, in the Integrated Entertainment Zone in the Primorye region. Summit Ascent is currently refining the design and construction elements of the Phase II development on Lot 10. Phase II development will double the number of entertainment facilities, significantly sizing up the lodging capacity of the existing property, as well as adding novel entertainment concepts such as new restaurants, bars, retail shops, an indoor beach club and convention space.
Alvin Chau, Chief Executive Officer and Director of Suncity Group, expressed his delight in Suncity Group holding a majority stake in Summit Ascent, “I am thrilled to see a second up-and-running integrated resort under Suncity Group in the year of 2020, amidst suboptimal business environment. I am amazed by the determination for Suncity Group to grow across Asia, and my team is executing my vision one step at a time. Gradually we are paving the way for Suncity Group to be a leading integrated resort operator and developer in Asia. As a businessman, I believe in operational track records. The resilience in the local Russian entertainment businesses even in times of COVID-19, plus the entertainment operating expertise of Suncity Group can blend together to become the perfect potion for future success.Suncity Group will leverage on the proximity of Vladivostok to nearby tourism markets such as South Korea and Japan to roll out facilities tailored to these tourists. As more Suncity Group integrated resorts are on their way, I am convinced that Suncity Group will become the most iconic entertainment name amongst Asia’s integrated resort scene.”
Adhering to the spirit of “Innovating With Diversity, Striving For Success”, Suncity Group spared no effort to develop entertainment and integrated resort products. Originated from Macau, Suncity Group actively explores integrated resort opportunities around the world.