Gaming firm Macau Legend Development has confirmed the sale of its Savan Legend casino resort in Laos, sealing the deal at $39 million. The firm disclosed the transaction in a stock filing sent to Hong Kong’s exchange, projecting a pre-tax gain of approximately HKD47 million ($6 million).
The decision to divest the Laos-based casino resort was initially revealed in June, aligning with the company’s strategic plan to refocus its resources on its Macau-based business operations.
Initially intended to sell for $45 million, the resort will now be transferred at a revised price of $39 million, with Shundo Yoshinari, a Japanese citizen unrelated to the company, confirmed as the purchaser. Yoshinari will acquire MLD Resorts Laos, an indirect subsidiary of Macau Legend holding complete control over Savan Legend.
Macau Legend cited the profit-making status of the Lao PDR gaming and hotel business in the 2022 financial year but underscored its financial instability. The company highlighted the increasingly restrictive landscape in Lao PDR, potentially impacting future profitability.
The sale’s anticipated gain is expected to fortify the company’s cash reserves, empowering liquidity. This move will redirect financial resources to Macau-based core business operations and future development endeavors.
Macau Legend is known for managing the Macau Fisherman’s Wharf complex and the Legend Palace casino, as a satellite operator under SJM’s license.