Gaming company Macau Legend has announced it sold a business jet to two of its directors, Donald Chow and Melinda Chan, for HK$10 million (US$1.2 million).
The aircraft in question is an Embraer Legacy 600, a long-range jet able to carry at least 13 passengers with a maximum operating altitude of 41,000′ and a normal cruise speed of 827 km/h.
The jet was sold by Macau Legend to an investment holding company, of which 90% per cent is owned by Donald Chow, a former executive director of the company and the son of the company’s founder David Chow – and 10 per cent owned by Melinda Chan Mei Yi – an executive Director of the Company and spouse of David Chow.
David is still a co-chairman, a non-executive Director and a substantial shareholder of Macau Legend, despite the restructuring that saw Levo Chan officially replacing Melinda Chan as Macau Legend Development’s CEO in December, 2020 after an investment by the Tak Chun Executive Director.
The company considered that since the Covid-19 pandemic has made outbound travel difficult and less frequent, the disposal of the jet would lower the non-operating expenses incurred to Macau Legend while the sales proceeds could be used to improve the liquidity of the group.
The HK$10 million disposal value was calculated based on the Consideration and the Aircraft’s net book value as at the date of the announcement.
However the company also noted that the disposal value was determined after ‘arm’s length negotiations with the buyers and taking into consideration the reference price gathered from Aircraft Bluebook system, an aircraft valuation platform, of approximately HK$31 million and on the basis of Aircraft being in perfect condition, insurance claims history and physical damages and repairs as well as the benefit of having an immediate and committed buyer.
Macau Legend has seen its losses expand in the first half of this year to HK$704.9 million, despite its revenues increasing by 55 per cent year-on-year to HK$527.4 million as of June, since expenses for sales and services also jumped by 18 per cent to HK$697.9 million.