Casino developer Macau Legend Development Ltd says its has a non-binding letter of intent relating to the potential disposal of its Landmark Macau casino hotel (pictured).
In a filing to the Hong Kong Stock Exchange on Wednesday, the firm didn’t name the potential suitor, or the total consideration involved.
The company said if the deal were realised it would “allow the group to expand its businesses in Macau and overseas without taking on too much additional leverage”.
In its 2016 annual report, published in late April this year, the firm said that – as of December 31, 2016 – it had outstanding secured and unguaranteed bank borrowings of approximately HKD3.39 billion (US$434.3 million) and an unsecured, interest-free loan and unguaranteed other borrowing amounting to approximately HKD58.5 million.
Macau Legend reported a consolidated loss of HKD277.5 million for calendar year 2016, and a HKD268.5-million loss in 2015. In July 2013, the group – whose co-chairman and chief executive is former Macau legislator David Chow Kam Fai – had raised net proceeds of approximately HKD2.06 billion from a global offering of shares, in order to fund expansion.
Last year the company acquired a casino hotel in Laos, Southeast Asia. Early in 2016 the group started building a casino project in the African island nation of Cape Verde, and in July 2016 signed a memorandum of understanding for a Portugal gaming project. Macau Legend has also pledged to build a fourth hotel at Macau Fisherman’s Wharf.
The reported suitor for the Landmark Macau is required to pay a refundable deposit of HKD460 million, which would form “part of the consideration”, according to Wednesday’s filing.
The firm noted in the document that it “remains firmly committed to the successful completion of the redevelopment of Macau Fisherman’s Wharf, and the possible disposal [of Landmark Macau] will enable the group to focus more on the new hotels, casinos and other tourist-related facilities at Macau Fisherman’s Wharf”.
In February this year, Macau Legend opened Legend Palace, the third hotel in Macau Fisherman’s Wharf.
In September last year, Macau Legend said a letter of intent relating to the potential disposal of the Landmark Macau had expired without a deal being concluded.
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”We do not believe that reopening the advance notice nomination deadline [for board directors] is appropriate or justified”
Daniel Boone Wayson
Chairman of the Wynn Resorts board of directors