Hong Kong-listed Macau gaming junket operator Suncity Group Holdings Limited said in a statement late Monday 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 on Monday night that it had applied to the Hong Kong Stock Exchange for the resumption of trading in its shares from 9:00 a.m. yesterday, i.e., 24 hours after trading in the shares had been halted following Chau’s detention on Saturday.
Suncity’s shares closed down by 48.24 percent at HK$0.13 yesterday, according to yahoo!finance.
Chau was remanded in custody by an examining magistrate in Macau on Sunday. He had been taken in for questioning by the Judiciary Police (PJ) on Saturday morning. According to a statement by the Public Prosecutions Office (MP), Chau and his alleged 10 accomplices are facing 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 and barred from leaving Macau.
The 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 Suncity’s “indirectly held” “Tigre de Cristal” (“Chrystal Tiger”) casino resort in Russia.
However, Suncity said in its statement late Monday 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 an allegation is untrue.”
Monday 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 [Chau’s pre-trial detention] 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 Monday 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.
Suncity is 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.
Reporters take photos of evidence displayed during a press conference by the Judiciary Police at their headquarters on Sunday about the alleged money laundering, organised crime and illegal gambling operation case involving junket mogul Alvin Chau Cheok Wa and 10 other suspects. – Xinhua
