Suncity Group Causes 50 Percent Drop In Share Price After Macau Pullout
Summary
- Suncity Groups closes all Macau operations
- Suncity Group CEO Alvin Chau resigns
- Share prices drop by over 50 percent
Once news broke that Suncity Group CEO Alvin Chau’s was arrested in a high-profile illegal gambling case, Suncity Group was in trouble.
Following Chau’s subsequent resignation, junket operator Sun City Gaming Promotion Co Ltd ceased its Macau operations. The firm also suspended its VIP operations in the city’s casinos from 1 December 2021.
More Trouble for Suncity
Macau’s gaming regulator, the Gaming Inspection and Coordination Bureau, popularly known as the DICJ confirmed the news of the closure. In an official statement, the bureau disclosed that it had received word from concessionaires on 30 November 2021 about Suncity’s temporary withdrawal from their casinos from the next day. The DICJ was tight-lipped about the exact count of the now defunct VIP rooms and the employed staff’s future.
Reuters
However, the regulator has refused to comment on Chau’s involvement in the illegal gambling case as the matter is being investigated. The DICJ also took a firm stance on the conduct of lawful activities by casino and junket operators. Meanwhile, Macau’s Labour Affairs Bureau (MLAB) has expressed its concern about the company’s current situation. The bureau has requested more information from the company on its workforce. The MLAB also revealed that it had received enquiries on labour issues at Suncity, although no formal complaint was registered.
It is a time of great trouble for Suncity as it stares at an uncertain future. Chau’s resignation from the posts of chairman of the board and executive director has sent literal shockwaves across the company. Suncity also announced the shutdown of its travel and related business operations. Aside from the fact that Chau resigned, the group stated that the rapid outbreak of the Omicron variant of COVID-19 was also the reason behind stalling its activities. This includes Sun City Gaming temporarily halting hotel accommodation supplies to Suncity Group Holdings Ltd.
Suncity Group had already cautioned about the adversities it might face due to Chau’s resignation and withdrawal of financial support. Collaborators have begun deserting Suncity Group. In a separate confirmation by a senior executive MGM Resorts International, it has come to light that Suncity has ceased operations at MGM properties in Macau.
Share Prices Plummet
The series of announcements made by the group on 1 December 2021 were preceded by the company suspending its stock from the trading list for the day. Trading resumed on 2 December 2021 with Suncity registering the biggest decline in its share price till date, dropping by over 50 percent.
David WalkerAuthor
David is our resident 'down under' contributor, letting us know what is going on in the southern hemisphere, he is also keen blackjack player
