Local hospitality operator Macau Legend Development Ltd. has found another potential purchaser for its The Landmark Macau property, according to a company filing with the Hong Kong Stock Exchange.
The potential purchaser, as yet unidentified by the company, entered into a non-legally binding letter of intent with Macau Legend on July 5, pursuant to which the local operator ‘intends to sell and purchaser tends to acquire the entire share capital and all the shareholder’s loan(s) owed’ by the subsidiary of the company which has the ‘piece and parcel of land’ and the buildings upon it – The Landmark Macau.
In September of last year a letter of intent for the sale of the same property to Wide Power Enterprises Limited expired after six months of negotiation, having failed to yield ‘any definitive investment agreement’.
While the ‘exact amount, the method of payment and consideration’ for the disposal ‘will be negotiated between the parties’, the agreement signed on Wednesday requires the purchaser to pay a refundable deposit of HK$460 million ‘of which HK$300 million is payable upon signing of the letter of intent and HK$160 million is payable within 30 days from the date of the letter of intent’.
If the formal agreement is not entered into within 90 days of the letter of intent it ‘shall cease and terminate’, with Macau Legend obliged to refund the deposit without interest to the purchaser. ‘In such event, neither party shall have any obligations and liabilities to each other,’ notes the filing.
The new funds would help ‘expand its business in Macau and overseas without taking on too much additional leverage,’ as well as focusing ‘more on the new hotels, casinos, and other tourist-related facilities at Macau Fisherman’s Wharf,’ which is still missing the Legendale Hotel as part of its overall development plan.
Speaking Wednesday at the 42nd Anniversary of the Independence of the Republic of Cape Verde, local businessman David Chow confided that he had recently signed another letter of intent, to create the “Sino-Atlantic Bank” in the country, linking it to the MSAR, according to local media.
Regarding the hotel, casino and marina project Chow is constructing in the city of Praia (meaning ‘beach’) – the capital of the country – he said he hopes to complete it as soon as possible but that “I want everything to run perfectly. The scheduling is not a problem; we need to follow the budget and that everything goes smoothly. Finishing the project is not complicated, but starting it is because there are always alterations to guarantee that everything is stable and in line with the demands of the future market,” Jornal Tribuna de Macau cited Chow as saying.
Chow’s company is also developing an integrated resort property in Portugal, but facing regulatory issues in developing a wharf in Setúbal noting “there’re things that aren’t under our control, but we understand because they’re the procedures of the country. But, of course, it’s important that things don’t delay much because it causes us losses,” Ponto Final cited Chow as saying.