Hong Kong-listed Macau Legend Development Ltd says the timing for arrangements regarding the planned disposal of a Laos casino resort business has been extended again, now to May 3.
The exercise regarding Savan Legend Resorts (pictured) in Savannakhet, Laos, had been due for resolution in February, but the so-called “long-stop date” was initially put back to March 31. Earlier this month, it had been pushed back to April 15.
The latest May 3 date was given in a Friday filing by gaming and hotel services firm Macau Legend. The latest update did not mention reasons for the new timetable.
Sale of Savan Legend had been announced in June 2023, with mention of signed a letter of intent by a would-be buyer, for a total consideration of US$45.0 million. The buyer was identified as an individual called Shundo Yoshinari, described as a “Japanese citizen currently residing in Japan” and someone who was an independent third party.
In a December filing, Macau Legend said that the entire equity interest in Savan Legend was to be sold at what it called an “initial consideration” of US$39 million, as agreed with the suitor Mr Yoshinari. The group said at the time that it expected the gain before tax on the disposal to be approximately HKD47 million (US$6.0 million).
The disposal, if realised, is expected to help strengthen Macau Legend’s cash flow and its financial resources for Macau operations, the firm has said in previous filings.
Macau Legend had a net loss for 2023 of HKD4.9 million, according to its annual results filed on March 28.
As of December 31, the firm’s total bank and other borrowings amounted to nearly HKD2.57 billion, of which HKD633.6 million will be due for repayment within one year. The company’s cash and cash equivalents amounted to HKD63.2 million as at the end of 2023.
