Timing on Macau Legend Laos casino sale extends to Apr 15

Apr 02, 2024 Newsdesk Latest News, Rest of Asia, Top of the deck  

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The timing for arrangements regarding planned disposal of a Laos casino resort business by Hong Kong-listed Macau Legend Development Ltd has been extended again, now to April 15.

The exercise regarding Savan Legend (pictured in a file photo) in Savannakhet, Laos, had been due for resolution in February, but the so-called “long-stop date” was then put back to March 31.

The latest April 15 date was given in a Monday filing by gaming and hotel services firm Macau Legend. The latest update did not mention reasons for the fresh timing.

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 21 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.

That update mentioned the purchaser would need to meet a suitability requirement as adjudged by the Laos government, and that the seller would also need to have Laos government consent.

The seller is also required to provide a Laos government-issued tax clearance certificate, as a written proof that Savan Legend had settled a flat-tax liability of US$2.5 million due for 2022, and of US$2 million for 2023, according to the December filing.

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 owns a tourism complex called Macau Fisherman’s Wharf, where it runs casino hotel Legend Palace, via a so-called services agreement, under the gaming licence of Macau concessionaire SJM Holdings Ltd. Fisherman’s Wharf is waterfront complex close to Macau’s Outer Harbour Ferry Terminal on the city’s peninsula.

Macau Legend had a net loss for 2023 of HKD4.9 million (US$626,193), 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.

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