Casino services firm Macau Legend Development Ltd and Dynam Japan Holdings Co Ltd have ended talks about a possible collaboration on gaming operations.
A non-binding memorandum of understanding “in respect of opportunities for business cooperation between the two groups” expired on Monday and was not extended, Macau Legend said in a filing to the Hong Kong Stock Exchange on Tuesday.
The company added that the two firms were unable to conclude or enter into any definitive agreement before the expiry of the memorandum.
“Although the memorandum of understanding has expired, the company will continue to consider any business cooperation between the two groups,” said Macau Legend, which runs two casino operations in Macau under the gaming licence of SJM Holdings Ltd.
Macau Legend and Hong Kong-listed Dynam first entered into a non-binding memorandum of understanding in August 2013. The term of the memorandum was extended twice, in February and August last year, respectively.
Dynam – a pachinko hall operator in Japan – has invested at least about US$85 million in Macau Legend, including an initial purchase of US$35-million worth of shares following the latter’s global public offering in Hong Kong in July 2013.
According to Macau Legend’s 2014 interim report, pursuant to the memorandum of understanding, Dynam was expected to establish and operate a minimum of 100 pachinko machines and other electronic games at Macau Legend’s waterside venue Macau Fisherman’s Wharf (pictured in an artist’s rendering), currently undergoing redevelopment. The two firms would share the net revenue from the operation.
The memorandum also provided that both firms would enter into a marketing joint venture, under which Dynam would market Macau Legend’s hotels and casinos to its mass and premium mass customers in Japan and South Korea.
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"If the [Macau casino] concessions are put up for bid, there will also be a lot of giant Chinese companies, some having nothing to do with gaming, which would like to take over these enormously successful casinos”
Professor emeritus at Whittier Law School in California, in the United States, and a visiting professor at University of Macau