Macau Legend says Cape Verde takeover of resort project has no ‘legitimate basis’

[MDT Photo]

Macau Legend Development Ltd. said the Cape Verdean government’s seizure of its long-stalled €250 million hotel and casino project has “no legitimate basis.” The Hong Kong-listed company disclosed the takeover in a Jan. 20 filing to the Hong Kong Stock Exchange.

On Jan. 15, Macau Legend received notice from Cape Verde authorities that they intended to take possession the next day. “The Cape Verdean Government requested the Company’s presence to facilitate a voluntary handover,” the filing stated. Macau Legend refused, citing the request as without “legitimate basis,” but officials entered the site in Cidade da Praia Bay anyway.

The project originated from a 2014 memorandum of understanding for tourism and real estate development in Praia City Bay. In 2015, then-chairman David Chow announced a €250 million (approx. MOP2.36 billion) investment on Santa Maria islet in Gamboa. The foundation was initially laid in February 2016, with first-phase completion targeted for 2021.

Cape Verdean authorities moved in November 2024, canceling the Establishment Convention and addendum with Macau Legend subsidiaries MLD Cabo Verde Resorts SA and MLD Cabo Verde Entretenimento SA. Officials alleged that Macau Legend “flagrantly and repeatedly” violated obligations, despite being given opportunities “to resume work or to negotiate the sale of its shares or the transfer of its contractual position to a potential party interested in continuing the project.”

Ulisses Correia e Silva, Prime Minister of Cape Verde, stated the government will now take back the area under concession and create conditions for new projects to emerge on the site.

Macau Legend is seeking legal advice but emphasized the takeover has no material impact. Its 2024 annual report had already fully impaired the assets’ carrying value to zero. “The recent development of the Investment Project will not have a material adverse impact on the operation or financial performance of the Company,” the board stated.