Macau Legend has completed the sale of its Savan Legend Resorts in Savannakhet, Laos, to Japanese buyer Shundo Yoshinari.
The announcement of the sale of Savan Legend was made in June 2023, stating that a letter of intent had been signed by a prospective buyer, Shundo Yoshinari, a Japanese citizen, for an initial consideration of $45 million.
The company later revealed that the entire equity interest in Savan Legend was to be sold for some $39 million, with Macau Legend expecting a gain before tax of approximately $6 million.
Originally scheduled for resolution in February of this year, the completion of the deal saw several delays.
In a recent dispatch, the company headed by Li Chu Kwan revealed that its Laos subsidiary MLD Laos had obtained the necessary consent from the Laos government to carry out the sale of the property to Eminent Innovations Limited, a company in which Shundo holds a 51 percent stake.
Justifying the disposal, Macau Legend previously disclosed that, although the property was profitable during the financial year of 2022 its financial performance was ‘unstable’ and was subject to ‘increasingly onerous restraints’ in Laos, thereby limiting its profitability in the future.
The sale further reduces Macau Legend’s international presence, with the Government of Cape Verde in negotiations to revoke the concession for its hotel-casino project in the city of Praia.
Macau Legend reported about HK$4.9 million ($628,497) in net losses in 2023, but with revenue increasing by 26.7 percent year-on-year, to HK$901.6 million ($115.5 million).
