Macau Legend Development Limited has announced an extension to the settlement period for sale of peninsula hotel and casino The Landmark Macau until 30 April 2018.
In a filing to the Hong Kong Stock Exchange late last week, the company said that it had agreed in writing with four previously announced buyers to extend the long stop date, stating that “additional time is required for the company to fulfill the conditions precedent under the disposal agreement.”
“As at the date of this announcement, the company is in the course of obtaining the documentation from the government authority in respect of transactions contemplated under the disposal agreement,” it added. “All other conditions under the disposal agreement have been fulfilled. The company expects that the completion will take place shortly after the fulfillment of all conditions.”
Macau Legend has already been paid HK$1 billion of the agreed HK$4.6 billion sale price, with the remaining HK$3.6 billion to be paid upon completion of the deal.
The sale will see the property’s owners – Macau Legend CEO David Chow and wholly owned subsidiary Hong Hock – offload 100% of the issued capital in another subsidiary, New Macau Landmark Management Limited (NML), with neither to have any further interest in The Landmark upon execution of the agreement.
The company had previously announced the four buyers as Dong Lap Hong Property Investment Company Limited, which will acquire 58% of NML, Tong Lap Tak Real Estate Limited (20%), Tong Hong Wan Real Estate Limited (17%) and Tong Tak Cheng Real Estate Limited (5%).
The buyers will acquire the entire combined stake in The Landmark Macau – a hotel and casino complex on the Macau Peninsula covering 80,129 square meters in gross floor area including 439 five-star rooms and suites as well as Pharaoh’s Palace Casino. Pharaoh’s Palace occupies 16,698 square meters with 60 mass market gaming tables, 17 VIP gaming tables and 141 slot machines.
The sale won’t completely end Macau Legend’s involvement, with one stipulation of the agreement being that Hong Hock will continue to provide gaming services at Pharaoh’s Palace “for as long as SJM maintains its status as a gaming concessionaire in Macau, including extensions and/or renewals of the existing gaming concession and/or a new concession obtained by SJM.”
Under the gaming services agreement, SJM is to pay Hong Hock around 15% of gross gaming income while NML, under its new owners, will pay Hong Hock a monthly management fee of 0.5% of gross gaming income. Neither Hong Hock or SJM will pay any rent for operation of casino facilities.
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