Cape Verde ends Macau Legend casino contract
The government has cited repeated contract breaches and project delays on the unfinished casino.
Cape Verde.- The government of Cape Verde has terminated its contract with Macau Legend Development (MLD). It accused MLD of failing to meet its obligations related to a US$264.7m integrated resort (IR) with a casino in the capital Praia. The government cited “contractual violations committed by MLD” on the long-delayed project.
Cape Verde notified the company on August 28. MLD replied on September 16, attributing its inability to comply with obligations to the Covid-19 pandemic. However, the government argued that the pandemic had ended in 2021 and that construction had still not resumed.
According to the news agency Lusa, the government stated: “The State of Cape Verde gave MLD companies every opportunity to resume construction works, negotiate the sale of shares, or transfer their contractual position to a potential interested party to continue the project.”
The decision was published in the Official Gazette and accompanied by an ordinance from the Ministry of Finance and Business Promotion. The government claimed MLD transferred more than 20 per cent of its share capital without prior approval, breaching rules for operations in Cape Verde.
The project dates back to 2015 when an agreement was signed by Macau businessman David Chow. The groundbreaking took place in February 2016 and, since then, only security personnel have been present at the site, which covers roughly 160,000 square meters. The Santa Maria islet has been partially excavated, and a short asphalted bridge has been built linking it to an eight-storey building that remains vacant and barricaded.
Concerns were also raised over legal issues involving MLD’s shareholders and directors in Macau and the financial state of MLD’s parent company.
Macau Legend posts net loss of US$19.55m for H1
MLD posted a net loss of HK$152.47m (US$19.55m) for the first half of the year, down from HK$182.5m (US$23.3m) in the first half of 2023. Revenue was up 16.54 per cent at HK$390.4m (US$50m).
Gaming revenue was up 43.7 per cent year-on-year to HK$208.51m (US$26.74m). As of June 30, 2024, the group had 33 gaming tables in operation in Macau, the same as in June 2023. The games drop was up 26.4 per cent year-on-year at HK$2.17bn (US$278m), with net win up 45.1 per cent at HK$379.11m (US$48.6m).
Non-gaming revenue was down 4.2 per cent year-on-year at HK$181.9m (US$23.31m). Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) reached HK$85.32m (US$10.94m), an improvement on a HK$52.21m (US$6.7m) in the first half of 2023.
The company said it will continue to “execute its strategies to get better equipped to seize opportunities and to overcome challenges” and that “resources will continue to be allocated to optimise the facilities of the Macau Fisherman’s Wharf to enhance the exclusive experience in the waterfront complex, as well as its flexibility to host large-scale events.”
