Zona de Azar China – Macau Legend Set to Secure More than US$39 Million from Sale of Laos Casino

China.- December 22th 2023 www.zonadeazar.com Gaming company Macau Legend Development has officially confirmed the sale of its Savan Legend casino resort in Laos for US$39 million (MOP313.7 million).

The announcement, made through a stock filing to the Hong Kong Stock Exchange on Thursday, revealed that the anticipated gain before tax from the transaction is estimated to be approximately HKD47 million (US$6 million).

This decision to sell the Laos-based casino resort was initially disclosed by the company in June, as part of its strategic shift to reallocate resources to its business operations in Macau. The property was initially intended to be sold to Shundo Yoshinari, a Japanese citizen with no prior connections to the company, for a sum of US$45 million. However, the consideration has been revised down to US$39 million, while Yoshinari remains the buyer.

Under the terms of the deal, Yoshinari will acquire the entire equity interest in MLD Resorts Laos, an indirect wholly-owned subsidiary of Macau Legend, which holds complete control over Savan Legend.

In its announcement, Macau Legend stated that although the gaming and hotel business in Lao PDR had been profitable in the financial year of 2022, its financial performance was inconsistent. The company also underscored that such businesses faced “increasingly onerous restraints in Lao PDR,” which could impede profitability in the future.

The anticipated gain from the sale is expected to bolster the company’s cash flow, enhancing its liquidity. This move will enable Macau Legend to redirect more financial resources toward its core business operations in Macau and its broader future development. Macau Legend is the operator of the Macau Fisherman’s Wharf complex, along with Legend Palace casino, a satellite casino operating under SJM’s license.

Edited by: @MaiaDigital www.zonadeazar.com