Summit Ascent Holdings Ltd reportedly sold 189 million ordinary shares to a Taiwan-listed shipping operator. The announcement was made on Monday by the firm, First Steamship Co Ltd, acquiring the shares. The estimated cost of each share was HKD 1.05 ($ 0.13). The Ascent Holdings is listed on Main Board of The Stock Exchange of Hong Kong Limited and is invested in handling of development and operations of Russian Far East integrated resorts.
According to the filing made in Chinese language to the Taiwan Stock Exchange in Taipei, Taiwan, by First Steamship, the acquisition of the shares was conducted by a subsidiary Heritage Riches Ltd of First Steamship. The acquisition process costed HKD 1.98 million and it represented 12.67 percent shareholding of Summit Ascent.
“Long term investment,” said the announcement as the reason for the acquisition of the shares.
Summit Ascent listed 20 million shares of Asian Casino investor Lawrence Ho Yau Lung for sale, which accounted for approximately 1.34 percent of the firm shares. The sale of these share will end his role as a direct shareholder in the firm.
Summit Ascent’s approximated issued capital shares of about 238.6 million which accounted for a percentage of about 16.03 are owned by Quick Glitters. According to a filing in Hong Kong, Mr Ho solely possesses the shares of Quick Glitter Ltd, which he plans to liquidate along with ordinary shares that he directly possesses.
According to the announcement, completion of liquidation process of Mr Ho and Quick Glitters shares is expected to take place on or before December, 20.
The Hong Kong announcement added that completion of placing process will conclude the role of Mr Ho and Quick Glitters in Summit Ascent.
A note released in late November by a brokerage firm, Union Gaming Securities Asia Ltd, warned about a possible increment in taxation on casinos based in Russia. The possibility of tax increment could decrease the revenue of Summit Ascent’s before amortization, depreciation, interest and taxation in 2018.
Summit Ascent’s resort in Russia, Tigre de Cristal, opened its first phase in 2015. Tigre de Cristal is the only casino property operational in Primorsky Krai, which a special investment zone near the Pacific port of Vladivostok. The company planned to start the first stage of next phase in “in the second half of 2019”.
