Macau Legend finalises sale of Laos Casino

Lea Hogg May 20, 2024

SiGMA news

Macau Legend finalises sale of Laos Casino

Hong Kong-based Macau Legend Development Ltd, a prominent player in the casino industry, recently announced the successful sale of its casino resort in Laos, Savan Legend Resorts. This strategic move, which took place on 16 May, 2024, marks the end of Macau Legend’s interest in the resort.

The sale process of Savan Legend Resorts, located in Savannakhet, Laos, had been delayed several times since its announcement in February. However, the deal finally received the green light from the Laotian government, allowing the transaction to proceed.

The initial announcement of the sale was made in June 2023, where a letter of intent was mentioned with a potential buyer for a total consideration of US$45.0 million. The buyer, Shundo Yoshinari, a Japanese citizen residing in Japan, was identified as an independent third party.

In a subsequent filing in December, Macau Legend revealed that the entire equity interest in Savan Legend was to be sold for an “initial consideration” of US$39 million, as agreed with Mr. Yoshinari. The company anticipated a pre-tax gain on the disposal of approximately HKD47 million (US$6.0 million).

Strategic improvement

This sale is part of a broader strategic shift for Macau Legend, as it may soon divest its other business assets outside of Macau. Recent reports suggest that the government of Cape Verde, an island nation in West Africa, is in discussions with the company to revert its concession to develop and operate a casino resort in the country.

Despite these international divestments, Macau Legend continues to maintain a strong presence in Macau with its tourism complex, Macau Fisherman’s Wharf. This waterfront area near the Outer Harbour Ferry Terminal on the Macau peninsula features a casino, Legend Palace, which is promoted under a services agreement with Macau licensee SJM Holdings Ltd.

However, the company’s financial performance in 2023 reflected a net loss of HKD4.9 million, as reported in its annual results filed on 28 March. The sale of Savan Legend Resorts is seen as a strategic move to improve the company’s financial health and focus on its core operations.