The deadline for Macau Legend Development’s proposed US$42m acquisition of the Savan Vegas Hotel and Entertainment Complex in Laos has been extended by a month until the end of August.
The deal will be extended further until September 10 if necessary, the company said in a filing to the Hong Kong Stock Exchange. The casino operates 92 tables and 493 slot machines whilst the hotel has 472 guest rooms.
The filing said: “As a result of the proposed replacement of the company by the project company as a party in the Revised Project Development Agreement, the company is expected to enter into a performance guarantee to guarantee the payment obligations of the project company with an aggregate liability of not more than US$30m.”
A concession licence of 50 years will be issued separately under what is called a Revised Project Development Agreement. It will allow a Laos-registered project company of the suitor to “engage in concession activities, lease the project area, and engage in the operation and management of the project.”
The complex, close to the border with Thailand, was previously operated by Bridge Capital under the guise of Macau-based Sanum Investments Ltd and Lao Holdings, although that ownership ended following a police investigation regarding Bridge’s Chief Executive John Baldwin and how the Savan Vegas casino had been operated. The Laos government took back control of the operation and appointed an interim management team.
Savan Vegas reported a net loss for the year to December 31, 2015, of HKD92.45m down from HKD3.45m in the prior-year period. Macau Legend stated that the reasons for the ‘significant deterioration’ were a five per cent fall in the value of the Thai baht, a drop in the number of visitors; the default in monies owed by two junket operators and a downturn in VIP play volume.