In order to expand its businesses in and out of Macau, casino services firm Macau Legend Development is letting go. Of its Landmark Macau casino hotel, that is.
The Hong Kong Stock Exchange-listed company announced that it has a non-binding letter of intent in relation to the possible disposal of one of its properties.
Under the LOI, the purchaser will “acquire the entire issued share capital of and all the shareholder’s loan(s) owed by New Macau Landmark Management Limited (NML)… the legal and beneficial owner of the piece and parcel of land and in the messuages erections and buildings thereon known as ‘The Landmark Macau’ at a consideration to be agreed between the parties.” NML is an indirect wholly-owned subsidiary of Macau Legend.
The filing did not name a potential suitor nor the total consideration involved, but the company said the buyer will be required to pay a refundable deposit of HK$460 million (US$58.91 million)—of which HK$300 million (US$38.42 million) must be paid upon signing of the LOI, followed by the remaining HK$160 million (US$20.49 million) within 30 days from the date of the LOI.
The refundable deposit will form part of the consideration is the deal pushes through, according to Macau Legend.
This isn’t the first time that Macau Legend tried to sell Landmark Macau. In September last year, the casino services firm said the LOI to the potential disposal of the casino hotel expired without a deal being concluded.
The company said the deal will “allow the group to expand its businesses in Macau and overseas without taking on too much additional leverage.”
In its 2016 report, Macau Legend said its outstanding secured and unguaranteed bank borrowing has reached HK$3.39 billion (US$434.3 million) as of December 31, 2016, while its unsecured, interest-free loan and unguaranteed other borrowing amounted to HK$58.5 million (US$7.49 million).
Last year, the casino and hotel operator acquired the disputed Savan Vegas Hotel and Entertainment Complex in Laos. Macau Legend is also building a casino project in Cape Verde in Africa, and has signed a memorandum of understanding for a Portugal gaming project.
The casino services firm has also pledged to build a fourth hotel at Macau Fisherman’s Wharf.
“The company remains firmly committed to the successful completion of the redevelopment of Macau Fisherman’s Wharf, and the possible disposal will enable the group to focus more on the new hotels, casinos and other tourist related facilities at Macau Fisherman’s Wharf,” Macau Legend said in the filing.