Macau Legend Development has finalized the sale of its Savan Legend Resort in Laos, following the receipt of all necessary government approvals. The move was announced in a Thursday filing to the Hong Kong Stock Exchange, confirming Eminent Innovations, a company incorporated in the British Virgin Islands, as the purchaser.
In a December 2023 filing, Macau Legend Development indicated its intention to sell the resort to Japanese national Shundo Yoshinari for $39 million (MOP 314 million). The pre-tax gain from this transaction was estimated to be approximately HKD 47 million (MOP 48.47 million/$6 million) at the time. A prior agreement in June 2023 had set the sale amount at $45 million.
Despite generating profits for the 2022 financial year, the financial performance of the gaming and hotel business in Savannakhet province, Laos, remained unstable, prompting the sale. Macau Legend now aims to concentrate on its Macau assets, having renewed a three-year deal with SJM in early 2023 to continue operating the casino at Legend Palace on the Macau peninsula.
“The completion of the disposal took place on May 16, 2024, and all rights and obligations of the purchaser under the agreement were transferred to Eminent Innovations on the same date, in accordance with the terms and conditions of the agreement,” the filing stated.
The company confirmed via the filing that Eminent Innovations Limited, 51% owned by the purchaser, met the suitability requirements of the Lao PDR government. Macau Legend’s MLD Laos unit also received the necessary government consent for the disposal.
Following the completion of the sale on May 16, 2024, all rights and obligations were transferred to Eminent Innovations, which will now assume operations of the casino. Macau Legend stated: “The Group no longer has any interest in the Target Company, and the Target Company ceased to be accounted as a subsidiary of the Group.”
Original article: https://www.yogonet.com/international/news/2024/05/20/72246-macau-legend-completes-sale-of-savan-legend-resort-in-laos
