Macau Legend to sell Laos operation for $45m
Local hospitality and casino services operator, Macau Legend Development Limited, has announced it has signed a letter of intent to sell its operation in Laos.
The announcement came over a filing with the Hong Kong Stock Exchange that gave a note of the listed company’s intention to sell all its holdings in the Savan Legend casino resort, located in Savannakhet, for a total of $45 million (MOP363 million).
“The Board is pleased to announce that on 13 June 2023 (after the trading hours of the Stock Exchange), the Company (as the vendor) entered into the Letter of Intent with the Purchaser, pursuant to which, the Company intends to sell, and the Purchaser intends to acquire, the entire equity interest in the Target Company, an indirect wholly-owned subsidiary of the Company, which in turn wholly owns Savan Legend (the Company’s operation in Lao PDR),” the notice stated. It also noted that the potential buyer is a Japanese national, residing in Japan, identified as Shundo Yoshinari, “or a company controlled by him as the Purchaser.”
Macau Legend justified the sale due to the financial instability of the company, adding that “such business is subject to increasingly onerous restraints in Laos PDR, thereby limiting its profitability in the future.”
It also added that the company intends to use the funds from the sale to “reallocate more financial resources to its business operation in Macau and for overall future development.”
Currently, Macau Legend owns the Macau Fisherman’s Wharf development, which includes the Legend Palace casino. This casino has been operating since January this year and according to the new gaming regulations, under a temporary (3 years) license provided by the gaming concessionaire SJM Holdings.
