Suncity Group Holdings Ltd. last week confirmed that its executive director, Andrew Lo, has become the company’s new majority shareholder. Lo assumed the 74.98 percent stake previously held by former Suncity chairman Alvin Chau, now imprisoned on charges of illegally promoting gaming on the Chinese mainland, money laundering and criminal association.
According to Inside Asian Gaming, Chau’s interest in the company had “been in some limbo” after lenders demanded repayment of a HK$300 million (US$32.2 million) loan after his arrest in late November. Chau, who remains in custody in Coloane Prison in Macau, stepped down as chairman of both Suncity Group and Summit Ascent Holdings in December.
Saying Chau’s arrest constituted an “event of default,” the lenders exercised their rights on the securities charged and put them out to tender, IAG reported. Lo, through his wholly-owned company Major Success Group Ltd., was named the successful bidder. Now Lo must make an offer for all issued shares in the company, as required under Hong Kong’s Takeovers Code.
Suncity has interests in integrated resort developments in Vietnam, Russia and the Philippines. On July 7, Suncity and Summit Ascent applied for the resumption of trading on the Hong Kong Stock Exchange.
