Macau Legend to sell Laos casino for US$45m
The company says it will reallocate funds to focus on Macau.
Macau.- Macau Legend Development has announced that it intends to sell its entire interest in Savan Legend Resorts Hotel and Entertainment Complex in Laos for the sum of US$45m. This decision was disclosed in a filing with the Hong Kong Stock Exchange. The buyer is named as Shundo Yoshinari, a Japanese citizen and resident currently unaffiliated with Macau Legend.
The terms of the deal stipulate that Savan Legend must enter into a flat tax agreement with the government of Lao PDR. The initial gambling licence is expected to last 99 years, and the transfer of the operating licence should occur prior to the completion of the disposal alongside fulfilment of other regulatory requirements.
Macau Legend said the decision was made due to the unstable financial performance and increasing restrictions faced by the gaming and hotel business in Laos. While the operation proved profitable in 2022, the company anticipates limited profitability in the future. It also wants to reallocate financial resources and concentrate on its Macau operations.
It acquired Savan Vegas in 2016 after reaching a deal with the Laos government, which had taken possession of the property from Sanum Investments in 2012 due to unpaid taxes and penalties.
Macau Legend intends to use the proceeds from the sale to bolster its business operations in Macau and fund future development initiatives. The company manages the Macau Fisherman’s Wharf complex, including a satellite casino under SJM’s gaming concession. It also has plans to build a hotel and casino in Cape Verde.
For 2022, Macau Legend reported that revenue was down 37.3 per cent when compared to the previous year, to nearly HK$711.6bn. However, its loss fell by 48 per cent to negative HK$607.2m (US$77.35m) due to an impairment loss for overseas projects in Cape Verde in 2021.
The group saw gaming revenue fall by 43.4 per cent to HK$519.1m for 2022, primarily due to the expiration of the Service Agreement between the Group and SJM on June 26. It also recorded a non-gaming revenue of approximately HK$192.5m, down by approximately HK$25.7m or 11.8 per cent from HK$218.2m in 2021.
