Macau casino junket operator Suncity sinks further after Alvin Chau steps down as chairman
- Suncity Group Holdings shares fell as much as 20 per cent following the resumption of trading; suspends its travel-related businesses
- Controlling shareholder Alvin Chau was arrested at the weekend over his alleged links with illegal cross-border gambling and a money-laundering syndicate
Shares of Suncity Group Holdings, Macau’s largest casino junket operator, fell as much as 20 per cent during trading on Thursday after its controlling shareholder Alvin Chau Cheok-wa stepped down as chairman.
Chau was arrested at the weekend over his alleged links with illegal cross-border gambling and a money-laundering syndicate. Suncity’s stock finished the day 3 per cent lower at HK$0.13.
The company has also halted its travel-related businesses because Sun City Gaming Promotion, a firm owned by Chau and its key supplier of hotel accommodation products, said it would stop supply. But the junket operator clarified that it does not own the VIP gambling business that has been suspended, as reported by Macau TV station TDM late on Tuesday.
“The board would [like to] clarify that the group has not been carrying on any VIP business in Macau, and such business has been carried on by [Sun City Gaming Promotion], which is a company wholly-owned by Mr Chau Cheok Wa,” Suncity said in a filing to Hong Kong’s stock exchange late on Wednesday.
Trading in Suncity Group was suspended on Wednesday, pending an announcement on the news coverage related to the VIP business carried out in Macau by Sun City Gaming. The shares were last traded at HK$0.13 on Tuesday.