Due to concerns regarding a very substantial disposal of a major asset of LET Group Holdings and Summit Ascent Limited, the sale of assets in Russia for US$116 million. The substantial disposal is subject to the reporting, announcement, circular and approval of shareholders of both companies under Chapter 14 of the Listing Rules (LR). Since there was a change in control of LET in May 2022, any material disposal under Rule 14.06E of the LR is restricted for a period of 36 months from the change in control unless the remaining group after the change in control can meet the requirements of Rule 8.05 of the LR (Note 5).
After the completion of the substantial disposal, LET and Summit Ascent may not have a business with a sufficient level of operations and assets of sufficient value to support their operations to warrant a continued listing status of their shares under Rule 13.24 of the LR. As a result, LET and Summit Ascent may not be regarded as suitable for listing under the LR (Note 6).
The Securities and Futures Commission has directed The Stock Exchange of Hong Kong Limited to suspend dealings in the shares of LET Group Holdings Limited (LET) and Summit Ascent Holdings Limited (Summit Ascent) under the Securities and Futures (Stock Market Listing) Rules (SMLR) with effect from 9:00 am on 14 February 2024 (Notes 1 to 3). Considering that suspending the dealings in the shares of LET and Summit Ascent is desirable for the purpose of maintaining a fair and orderly market and protecting the interest of the investing public.
The SFC’s investigation is ongoing.
Resources:
https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR22