By Exchanging his Shareholder Loans into Perpetual Securities;
Enhancing the Group's Net Asset Position
HONG KONG, Aug. 18, 2020 /PRNewswire/ -- Suncity Group Holdings Limited ("Suncity" or "the Group", Hong Kong Stock Exchange code: 1383) is pleased to announce that Chairman Mr. Alvin Chau Cheok Wa ("Chairman" or "Mr. Chau") is exchanging his existing Shareholder Loans into Perpetual Securities, on an unsecured and unsubordinated basis. Under this arrangement, Suncity may choose to repay or not to repay Mr. Chau both the principal and interest payments from the tenth year onwards. Mr Chau's act of exchanging his Shareholder Loans into Perpetual Securities is a strong injection of confidence into the Group as this shows that Mr. Chau is not worried about the Group's ability to repay him. Besides, as the Shareholder Loan debt is now being exchanged into the Group's equity, the Group will reduce its gearing ratio, enlarge its capital base and enhance its net asset position.
The Perpetual Securities issued today have no maturity date. Suncity may choose whether or not to repay the interests and the principal to Mr. Chau from the tenth year onwards. In addition to exchanging Mr Chau's existing HK$3.88 billion Shareholder Loans into Perpetual Securities, Mr. Chau has further committed to borrow to a maximum of HK$6 billion of funds to the Group from his own pocket in the form of additional Perpetual Securities, signifying his strong commitment to Suncity.
Currently, Suncity's integrated resort developments are running at full-steam. Hoiana, the Group's flagship integrated resort in Vietnam, finally opened for preview in June 2020 amidst the pandemic, with the Grand Opening scheduled in 2021. Tigre de Cristal, the integrated resort in Russia, is undergoing a facelift under Suncity's directions, adding elements that our guests love best. Suncity has also been proposing the acquisition of Summit Ascent, the holding company of Tigre de Cristal, so that Suncity will build and operate future phases. In the Philippines, piling and architectural design works are continuing in progress in Westside City Project located in Entertainment City in Manila. The additional funds committed by Mr. Chau will be used to finance Suncity's integrated resort projects, helping Suncity to transform into one of the leaders in integrated resorts in Asia.
Mr. Alvin Chau, Chairman of Suncity said, "Suncity Group is riding on the fast-track of integrated resort development. I completely understand that a high growth company like Suncity requires a lot of funds to expand. As the largest shareholder, the largest creditor, and the Chairman of Suncity Group, I am happy to dip my own pockets to ensure that Suncity's expansion will go on. I am fully backing Suncity, and I am confident that Suncity will soon turn into one of the most aspiring leaders in integrated resorts in Asia."
About Suncity Group Holdings Limited (HKEx stock code: 1383)
Suncity Group Holdings Limited ("Suncity" or the "Group") is en-route to become a leading integrated resort operator in Asia. Originated from Macau, Suncity develops, operates and manages integrated resorts across Asia, including Vietnam, the Philippines, Russia, and Japan.
Hoiana is the first flagship integrated resort that Suncity jointly develop with our investment partners. Located in Central Vietnam, HOIANA is only 35 minutes away from the Danang International Airport and is located near to top tourist attractions in Danang and Hoi An. HOIANA is a world-class integrated resort with branded hotels, state-of-the-art gaming floors, multiple F&B restaurants, award-winning golf course and long pristine beaches.
Suncity is the single largest shareholder of Summit Ascent Holdings Limited (HKEx: 102), and participates in the development of future phases of Tigre de Cristal Resort in Vladivostok, Russia. Suncity is also the controlling shareholder of Suntrust Home Developers, Inc. (PSE: SUN), who is going to co-develop Westside City project in the heart of Entertainment City in Manila, the Philippines. The Group also offers consultancy services to large scale integrated resorts in Asia. In addition, the Group operates in the travel related product and services segment and the property segment.
Adhering to the spirit of "Innovating With Diversity, Striving For Success", Suncity Group spared no effort to develop entertainment and integrated resort products. Originated from Macau, Suncity Group actively explores integrated resort opportunities around the world.
For more information about the Group, please visit http://www.suncitygroup.com.hk/?lang=en
For Media & Investor Enquiries:
Suncity Group Holdings Limited – Investor Relations
Ms Winnie Lei
Tel: +852 2598 1180
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