Macau Legend Development Limited announced via press release on May 13 that it had entered into a USD42 million (approximately HKD326 million) project development agreement (PDA) with a company wholly-owned by the Ministry of Finance of the Lao People’s Democratic Republic, to purchase the Savan Vegas Hotel and Entertainment Complex, a full-service casino, hotel and resort located in Laos’ Savannakhet Province.
However, the apparently very advantageous and profitable business might be tainted for David Chow’s company, as the Savan Vegas Hotel and Entertainment Complex is involved in a series of serious disputes and legal actions that are directly connected to its owners.
In another statement on May 5, Lao Holdings N.V., the parent company of Sanum Investments Limited, stated that it has filed three legal actions against Laotian authorities for violating the 2014 settlement agreement reached by both parties, stipulating the sale of the Savan Vegas Hotel and Casino, and other assets, for maximum value to the benefit of all parties.
David Chow
According to the same statement, “these actions have been taken in direct response to the expropriation and planned sale of Sanum’s gaming and hotel complex located in Savannkhet, Laos,” that has now reportedly gained the involvement of the Macau company as the buyer.
“All of the actions taken by the Lao Government over the past two years have been a blatant attempt not only to avoid, but systematically obliterate its legal obligation to work with us in good faith,” said Jody Jordahl, President of Sanum Investments in the same statement.
However, none of these actions and lawsuits have been reported or identified in the note sent by the Macau Legend to the Hong Kong Stock Exchange as potential risks for the business.
The Savan Vegas Hotel and Entertainment Complex occupies 50 hectares of land, which currently features gaming facilities with 92 tables and 493 slot machines; a 476 room hotel and convention center, restaurants, bars and other dining, recreational and retail shopping facilities.
The PDA announced that Macau Legend has an initial term of 50 years which may be extended for an additional period up to another 49 years.
Regarding the business agreement, the co-chairman, executive director and CEO of Macau Legend, David Chow, said: “We have been looking to invest in and develop integrated resort projects outside of Macau.” He thanked the support of the Lao PDR Government, for their trust in the company to turn the Savan Vegas project into a regional entertainment hub in Southeast Asia.
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