Macau Legend has announced that it will be receiving some $6 million less than initially expected for the sale of its 100 percent interest in its Laos casino operation: Savan Legend.
In a stock exchange filing on Wednesday, the group indicated that it would sell the operator of the Savan Legend hotel and casino property for $39 million.
The group in June announced that it would be selling its entire interest in the Lao gaming operation for $45 million.
The purchaser remains the same: Japanese businessman Shundo Yoshinari.
Macau Legend had initially purchased the Savan Vegas property for $42 million, paid out to the Laos government, who had seized the property from its previous operator Sanum Investments in 2012 – alleging tens of millions in unpaid taxes and penalties.
Macau Legend received an initial deposit of $10 million for the disposal, while a further $9.5 million is set to be paid within 15 business days of the signing of the agreement.
A further $19.4 million upon completion will be issued ‘through cashier order’and a further $100,000 in ‘reserves for deductable liabilities’ will be settled ‘upon the adjustment of the initial consideration’.
Macau Legend noted that ‘although the gaming and hotel business in Lao PDR was profit making for the financial year of 2022, its financial performance is unstable and such business is subject to increasingly onerous restraints in Lao PDR, thereby limiting its profitability in the future’.
After the disposal, Macau Legend will only operate the Macau Fisherman’s Wharf complex, including a satellite casino it manages under SJM’s gaming concession. It has been attempting to build a hotel and casino in Cape Verde but has encountered numerous issues.
