LISTED Suntrust Home Developers, Inc. on Thursday clarified that the arrest of Suncity Group Holdings, Ltd. Chairman Chau Cheok Wa will not affect the construction of the hotel and casino in its co-development agreement with Westside City Resorts World, Inc.
Suncity Group is the parent company of Fortune Noble, Ltd., which owns a majority or a 51% stake in Suntrust.
“[Suntrust Home Developers] currently does not have commercial operations and the construction of its five-star hotel and casino complex (Main Hotel Casino) is progressing as scheduled,” the Philippine listed company said in a disclosure on Thursday.
It added that the developments surrounding Mr. Chau will not “have a material impact on the timeline of the construction.”
Mr. Chau, who also sits as board chairman of Summit Ascent Holdings Ltd., (SA Holdings), was arrested and detained over alleged illegal cross-border gambling activities and suspected involvement in illegal gaming and money laundering.
Meanwhile, news reports also said Russia-based Tigre de Cristal was involved in cross-border gambling activities to look for customers in China for its gaming operations. SA Holdings, which has a 77.5% stake in the integrated resort, said this is “untrue.”
Both Suncity Group and SA Holdings released statements through the Hong Kong Exchange to clarify that none of the developments will impact their respective operations.
On Thursday, Reuters reported that Mr. Chau has resigned from all of his positions at the Suncity Group and that gaming rooms operated by a company owned by Mr. Chau have since been closed.
According to Suntrust’s disclosure on Wednesday, Mr. Chau has also informed SA Holdings of his plans to step down as chairman of the board and as a non-executive director of the firm.
For their part, the board of directors of Suntrust said the developments will not have “any direct material adverse impact on the financial position, business, or operations of [Suntrust Home Developers].”
According to a regulatory filing on Nov. 15, the company logged cash and equivalents of P7.67 billion as of end-September. Suntrust said the funds “will support immediate construction [of the hotel and casino complex] and working capital requirements.”
The company is eyeing Main Hotel Casino to be a five-star hotel and casino establishment, which will feature at least 400 rooms, 960 parking slots, and a casino establishment that would welcome both mass and VIP markets.
Suntrust shares at the local bourse closed unchanged on Thursday at P1.13 apiece. — Keren Concepcion G. Valmonte
