Suntrust Resort Holdings Inc, a Philippine-based company developing a casino hotel in Westside City, Manila, stated that it currently lacks sufficient information to evaluate how the sale of the Tigre de Cristal licensee might affect its business. While the situation remains fluid, Suntrust acknowledged the need for further updates before making any definitive assessments.
Meanwhile, Summit Ascent Holdings Ltd—longtime investor in the Tigre de Cristal casino resort in Vladivostok, Russia—recently announced its non-compliance with Hong Kong Stock Exchange rules. This development followed the abrupt resignation of five directors on January 15. These departures, according to company statements, directly resulted from the Hong Kong bourse’s disapproval of a US$116 million deal involving the sale of G1 Entertainment LLC, the license holder of Tigre de Cristal. Due to the Russia-Ukraine conflict, the exchange deemed the deal’s uncertainties too great to ignore.
Andrew Lo Kai Bong, the sole remaining director of Summit Ascent, continues to chair LET Group Holdings Ltd, the Hong Kong-listed parent company of Summit Ascent. LET Group, which controls 51 percent of Suntrust, confirmed that all its other board members resigned due to the failed sale of the Tigre de Cristal licensee. Notably, this leadership shakeup marks a pivotal moment for both entities.
Suntrust’s management emphasized that they require additional details before determining whether the Vladivostok exit will impact its own operations or financial partnerships. For context, Summit Ascent Investments Ltd—a unit of Summit Holdings—currently holds PHP5.60 billion (US$99.7 million) in convertible bonds from Suntrust’s 2020 issuance and another PHP6.40 billion from 2022. These sizable holdings underscore the financial links between the two companies.
In 2023, Suntrust and Summit Investments reached an agreement on a PHP13.51 billion convertible bond subscription designed to settle the earlier bond obligations. However, as of the latest disclosure, Suntrust has not yet issued this PHP13.5-billion bond—highlighting a delay that could have financial implications moving forward.
Initially, the Primorye region in Russia sought to rival Macau as a major casino destination. A 2011 feasibility study by Global Market Advisors projected up to US$5 billion in annual revenue from eight proposed casino projects. Nevertheless, global events reshaped the landscape. The Philippines, now emerging as a more stable and dynamic gaming hub, has overtaken Russia’s ambitions in the industry.
Given the persistent international sanctions on Russia and their uncertain duration, Summit Ascent’s withdrawal from Vladivostok appears both practical and timely. Consequently, the company’s decision to shift focus makes strategic sense. LET Group can now fully commit to its Manila-based project—conveniently located just eight minutes from Ninoy Aquino International Airport.
With the local gambling market steadily expanding and fewer capital restrictions compared to Russia, the Manila project offers a more secure and promising future. Thus, redirecting resources to the Philippines positions LET Group to capitalize on a vibrant gaming sector without the geopolitical baggage that continues to hinder progress elsewhere.
