Macao Legend Development, a gaming and hotel services company, confirmed it would divest its Saban Legend casino resort (pictured) in Savannaket, Laos, an “initial” consideration of US$39 million that is currently “subject to adjustment.”
In a filing with the Hong Kong Stock Exchange on Thursday, the group said it expected pre-tax profits on the disposal to be “about HK$47 million (about $6 million).
This is based on the Laos unit holding an unaudited consolidated net debt of about HK$182 million as of Oct. 31.
The buyer is a man identified as Yoshinari Shundo, described as “Japanese currently residing in Japan” and is an independent third party.
Macau Legends said in June it had signed a letter of intent with Yosinari to sell the Saban Legends casino resort, which was valued at US$45 million.
In May 2016, Macau Legends said it had agreed to pay US$42 million to other parties for the right to operate a casino hotel in Laos.
“Rao PDR [People’s Democratic Republic]’s gaming and hotel businesses have been profitable in fiscal 2022, but their financial performance has been unstable and these businesses are increasingly subject to onerous constraints in Rao PDR, limiting their future profitability,” Macau Legends said in a release on Thursday
The Lao division MLD Resorts Laos Inc, which is registered in British Virgin Islands, reported a pre-tax profit of just HK$12.03 million in 2022, compared with a loss of HK$64.03 million in 2021, when restrictions related to the COVID-19 pandemic disrupted its business.
Macau Legend Says Disposal Gains “Strengthen Group’s Cash Flows” To “Strengthen Liquidity… It said it expects to be able to reallocate more resources for its business operations in Macau and its overall future development.
Macao Legends has a business connected to one casino in Macao – Legend Palace at Macao Fisherman’s Pier – under a so-called service agreement with Macao Licensee SJM Holdings Ltd.
In August, Macau Legends reported a net loss in the first half of the year, close to HK$182.5 million on revenue of HK$422.2 million, down 22.7% from a year earlier. The half-year loss represents an improvement in the loss of HK$485.5 million recorded in the first six months of 2022.
BY: 파워볼사이트