Russian-Ukraine Conflict Sparks Sale of Shares in G1 Entertainment LLC

Russian-Ukraine Conflict Sparks Sale of Shares in G1 Entertainment LLC

Showcasing the dynamic nature of global investments, Hong Kong-listed investment holding company “LET Group Holdings” has announced the sale of the license of its Tigre De Cristal Resort in Vladivostok for a substantial $116 million. This move, prompted by uncertainties arising from the ongoing geopolitical tensions, mainly the Russian-Ukraine conflict that has become a catalyst for such strategic decisions. LET Group’s decision has not only stirred the financial landscape but also led to the departure of independent non-executive directors, adding a layer of intrigue to the unfolding narrative.

The announcement revealed that every independent non-executive director parted way with LET Group because of their disagreement with the sales contract. It is worth-mentioning here that despite the departure of the non-executive directors, seasoned casino investor Andrew Lo Kai Bong remains the chairman as well as director of both LET Group and Summit Ascent.

The crux of the matter is Oriental Regent Ltd.’s decision to sell the entire shares in its wholly-owned G1 Entertainment LLC to the Russian entity Dalnevostochniy Aktiv LLC. It may be noted here that Orient Regent is a non-wholly-owned indirect arm of LET Group, and it holds the gaming authorization for Tigre de Cristal that has been officially granted by the government of Russia.

The $116 million deal will reportedly take place outside of Russia due to the sanctions imposed on the country. Oriental Regent said it remained committed to refunding the company’s $28 million investment, trimming down the company’s exposure to the regulated Russian market to zero upon conclusion of the transaction.

LET Group and Summit Ascent Holdings Ltd. defended the sale of the license of its Tigre De Cristal Resort, citing the adverse impact of the Russia-Ukraine conflict and associated sanctions on the operations and prospects of G1 Entertainment. Both entities emphasized that further announcements would be made after further consideration and evaluation.

Defending the sale, LET Group and its associate said, “Further announcement will be made by the company if and when appropriate after due consideration and evaluation.”

Meanwhile, Taiwan-based Firich Enterprises Co Ltd., which holds a 20 per cent stake in Oriental Regent, is reportedly looking forward to raising $28 million in cash from the sale. The departure of directors, the strategic relocation of transactions due to sanctions, and the potentially drastic financial implications for stakeholders underscore the profound impact of geopolitical events on the world of global investments.

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