Hong Kong’s SFC warns jailed Macau ‘junket king’ Alvin Chau’s former firms over Russia deal
- The SFC warned it may delist two companies formerly headed by Alvin Chau because of concerns about a US$116 million sale of assets in Russia
- The watchdog is concerned LET Group and Summit Ascent had not complied with rules requiring shareholders’ approval of the deal
Hong Kong’s securities regulator warned it may delist two companies formerly headed by jailed Macau gambling kingpin Alvin Chau Cheok-wa because of concerns about a US$116 million sale of assets in Russia.
Shares remain halted as the Securities and Futures Commission (SFC) said they were concerned LET Group Holdings and Summit Ascent Holdings had not complied with rules requiring shareholders’ approval of the deal, the regulator said in a statement on Wednesday.
The SFC asked both companies to address its concerns but has not received a response, it said.
The completion of the asset sale may leave both LET Group and Summit Ascent without sufficient assets to warrant their continued listing in Hong Kong, it said. The SFC said it has serious concerns about the conduct of the companies and their management.
LET Group and Summit Ascent did not immediately respond to requests for comment from Bloomberg News. LET Group was formerly part of Chau’s gambling empire Suncity Group before it re-branded in 2022 with Andrew Lo at the helm, and the firm holds a nearly 70 per cent stake in Summit Ascent.
The SFC investigation continues the long decline of what was once a leading player in the world’s biggest gambling hub. Chau and his Suncity Group ran Macau’s largest junket operator, heading a lucrative industry that attracted high rollers from mainland China with private jets, luxury suites and gambling credits.
The sector crumbled after a crackdown by Beijing on concerns over capital outflows and potential money laundering and Chau is now serving 18 years in prison after being found guilty of criminal association, illicit gambling and fraud.
But even after LET Group cut ties with Chau, the firm has struggled. Before their suspension, shares were trading near a record low and the firm ceased its involvement in managing the Hoiana resort in Vietnam.
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“The company’s business was hit by several negative factors simultaneously,” said Angela Hanlee, a senior gaming and hospitality analyst at Bloomberg Intelligence.
“Issues associated with Alvin Chau made its parent company’s junket business evaporate. Covid dragged tourist foot flow to Hoiana in Vietnam, and the company lost direction of its business in Vladivostok due to sanctions related to the Russia-Ukraine conflict.”
Summit Ascent has also faced its own recent turmoil. A raft of executives’ resignations, citing disapproval about an unidentified transaction, has left Andrew Lo as the sole member of the company’s board.
The SFC did not disclose details on the asset that was sold beyond that it was indirectly held by Summit Ascent through a 77.5 per cent-owned subsidiary.
Industry publication GGRAsia previously reported that the sale was of the gaming license holder of the Tigre de Cristal casino in Russia’s east.
