Hong Kong-listed Macau gaming junket operator Suncity Group Holdings Limited said in a statement last night that it has been informed by its board chairman-cum-executive director Alvin Chau Cheok Wa of "his intention to resign" from his posts.
The company (Hong Kong Stock Exchange stock code 1383) announced Chau's intention to resign in a statement to the Hong Kong Stock Exchange.
According to the statement, the company "will update shareholders and potential investors... on any further development on the matter by way of further announcement(s) (including any developments of the proposed resignation of Mr. Chau) as when necessary in accordance with the Listing Rules."
Suncity also said late last night that it had applied to the Hong Kong Stock Exchange for the resumption of trading in its shares from 9:00 a.m. today, i.e., 24 hours after trading in the shares had been halted following Chau's detention for questioning on Saturday.
As of 3:30 p.m. today, Suncity's shares were down by 44.71 percent, according to yahoo!finance.
Chau was remanded in custody by an examining magistrate in Macau yesterday. He had been taken in for questioning by the Judiciary Police (PJ) on Saturday morning. According to a statement by Macau's Public Prosecutions Office (MP), Chau and his alleged 10 accomplices face a string of charges, namely organised crime membership, organised crime leadership, money laundering, and illegal gambling operations. If found guilty, the defendants face up to 12 years behind bars. A total of five of the 11 suspects have been remanded in custody. The remainder have been released on bail.
Macau's Judiciary Police took action on Saturday, a day after the Public Security Bureau (PSB) in Wenzhou city, Zhejiang province, had issued a warrant for Chau's arrest for suspected illegal cross-border gambling activities and alleged money laundering, as well as alleged cross-border illegal gambling activities in the "indirectly held" "Tigre de Cristal" ("Chrystal Tiger") casino resort in Russia.
However, Suncity said in its statement last night that "as to the allegation regarding the involvement of Tigre de Cristal in cross-border gambling activities, the Board would like to clarify that such allegation is untrue."
Last night's statement by Suncity also said that "so far as the Board is aware, other than Mr. Chau, neither the Company nor any of its subsidiaries nor any director, officer or staff or any member of the Group is under investigation and/or charges in connection with the Incident."
Suncity acknowledged in its statement that "the Group is dependent on the financial support from Mr. Chau and his related companies," adding that "in the event that the Group loses the support of Mr. Chau for whatever reason, the financial position, business and operation of the Group will be adversely affected."
The statement also said that "the Board is of the view that, save as mentioned... in connection with the potential risk of SCGPCL [ Sun City Gaming Promotion Company Limited] being unable to supply hotel accommodation products to the Group (under the Group's travel and related business segment) and the potential risk of loss of financial support of Mr. Chau, the Incident does not have any direct material adverse impact on the financial position, business or operation of the Group."
The statement was issued by Company Secretary Chiu King Yan. According to the statement, as at the date of last night's announcement, Alvin Chau, Lo Kai Bong, John Au Chung On and Manuel Assis da Silva were the company's executive directors, while Tou Kin Chuen, Dr. Roderick Wu Kam Fun and John Lo Wai Tung were its independent non-executive directors.
At the time of this weekend's "incident", Suncity was reportedly Macau's number-one gaming junket operator.
Junkets are intermediaries between casino operators and high-rolling gamblers. Customarily, junkets in Macau also run so-called VIP rooms for high-stakes gamblers on behalf of local casino operators.
Junkets are licensed annually by the Gaming Inspection and Coordination Bureau (DICJ), the sector's regulator.
Macau junket mogul Alvin Chau Cheok Wa poses in this undated file photo. - Photo courtesy of MacauNews
