Shareholders of Macau Legend Development Limited, the owner of Macau’s Fisherman’s Wharf precinct on the peninsula and former operator of satellite casino Legend Palace, have approved a comprehensive capital reorganization of the company.
At an Extraordinary General Meeting held earlier this week, shareholders voted almost unanimously in favor of three key resolutions, including the capital reorganization itself as well as the cancellation of Share Premium Account with transfer to a contributed surplus account and a change of domicile.
Macau Legend’s capital reorganization alongside new funding measures are aimed at stabilizing its financial position to support future operations.
A change of domicile from the Cayman Islands to Bermuda allows the company to undertake a capital reduction without the need for court sanction, therefore expediting the process and reducing execution risk.
Once complete, Macau Legend plans to implement several capital restructuring actions. First, it will cancel its entire share premium account, transferring approximately HK$4.16 billion (US$534 million) to a contributed surplus account. It will then conduct a capital reduction, decreasing the par value of each issued share from HK$1.00 to HK$0.01 with the credit arising from the reduction will to be moved to contributed surplus, which the company plans to use to offset accumulated losses.
The authorized but unissued shares will then be subdivided into new shares of HK$0.01 each, increasing flexibility for future share issuance.
The restructuring steps are tied to Macau Legend’s proposed rights issue, through which it aims to raise new capital. Under the rights issue, Macau Legend will offer one rights share for every two existing shares held with the aim of raising HK$93 million (US$12 million).
The company earlier this year detailed multiple uncertainties relating to its ability to continue as a going concern after reported a loss of HK$1.42 billion (US$182 million) in the six months to 30 June 2025.
The loss was primarily due to an impairment loss of HK$1.27 billion (US$163 million) related to its Macau property, with Legend Palace being one of the satellite casinos impacted by the closure of the city’s satellite business. Legend Palace officially ceased gaming operations on 12 November.
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