LET Holdings Begins Sale of Japanese Assets
Date: 2024-07-12 Author: Robert Beloved Categories: EVENTS
Strategic Decision
Hong Kong Stock Exchange-listed LET Holdings has announced its intention to sell non-core assets in Niseko, Japan, as part of a strategy to improve its cash flow. In an official statement, the company stressed that the initiative is aimed at divesting its non-core property development business in Niseko, although no buyer has yet been found.
The move follows LET's recent decision to sell its stake in Russian casino Tigre de Cristal through its subsidiary Summit Ascent. This was caused by sanctions risks and financial losses associated with the ongoing Russian-Ukrainian conflict. However, as in the case of assets in Niseko, a buyer for Russian assets has not yet been found.
Since February 2024, LET Holdings shares have been suspended from trading on the Hong Kong Stock Exchange, a suspension that continues to this day. This creates additional challenges for the company seeking to strengthen its financial position.
New Appointment at Summit Ascent
At the same time, LET's subsidiary, Summit Ascent, announced the appointment of Chan Heng Keat as a new non-executive director, effective 10 July 2024. Chan Heng Kit previously held senior management positions in a travel agency in Vietnam and a gambling industry in Macau. It is important to note that, to date, Chan has had no affiliation with LET or its subsidiaries.
LET previously approved a $17 million loan for its Philippine subsidiary Suntrust Resorts Holding. The funds will be used to build the main casino hotel as part of the Westside City development in Manila, which is scheduled for completion in 2025.
As such, LET Holdings is taking active steps to restructure and strengthen its financial position. The sale of non-core assets in Niseko and exit from the Russian market are part of this strategy aimed at increasing the company's sustainability in the face of current economic challenges.
