Macau Legend Development Sells Laos Casino Resort for $39 Million
In a significant business move, Macau Legend Development has finalized the sale of its Savan Legend casino resort in Laos for $39 million. This transaction was disclosed in a stock filing to the Hong Kong exchange, indicating a projected pre-tax gain of around HKD47 million ($6 million).
The decision to divest the Laos-based casino resort aligns with Macau Legend’s strategic plan to concentrate resources on its Macau operations. This move marks a shift in the company’s focus and allocation of assets.
Sale Details and Revised Price
Initially intended to sell for $45 million, the Savan Legend resort’s price was revised to $39 million. Shundo Yoshinari, a Japanese citizen with no previous ties to the company, is confirmed as the purchaser. Yoshinari will acquire MLD Resorts Laos, which controls the Savan Legend, reinforcing the strategic redirection of Macau Legend.
Despite its profitable status in the 2022 financial year, Macau Legend cited the Lao PDR gaming and hotel business’s financial instability. The company also pointed out the increasingly restrictive business environment in Lao PDR, raising concerns about future profitability.
Reinforcing Liquidity and Refocusing Strategy
The sale is expected to strengthen Macau Legend’s cash reserves, thereby enhancing liquidity. This strategic disposal of assets will allow the company to channel financial resources towards its core business in Macau and future development projects.
Macau Legend is recognized for managing the Macau Fisherman’s Wharf complex and the Legend Palace casino. As a satellite operator under SJM’s license, this move signifies a strategic recalibration of the company’s business focus.
Our Comment on the Article
This sale represents a pivotal moment for Macau Legend, as it realigns its business strategy to focus more intensely on its Macau operations. The strategic sale of the Savan Legend resort in Laos not only enhances the company’s financial stability but also underscores its commitment to strengthening and expanding its presence in Macau.
This move could signal a broader trend in the gaming industry, where firms prioritize core markets and operations to maximize profitability and operational efficiency.