The worldwide-known gambling hub Macau is in a constant state of development and change, and this is visible by the latest news regarding one of its famous gambling locations called Landmark Macau. It was confirmed this Monday that the discussed sale deal for the casino resort has reached its final stage and the entirety of the equity was sold in the previously mentioned New Macau Landmark Management Ltd.
The development around the said location has been discussed for quite some time now as the future of the location remained unknown for several months. It could be recalled that back in November 2017 the casino developer which oversees the management of the location made it clear that it is looking forward to selling the location and dissociating from its future operation. The said deal is going to amount to HK$4.6 billion and four companies operating in the gambling field in Macau expressed their desire to enter the deal shortly after the announcement.
They will receive the entire percentage of the equity in New Macau Landmark Management Ltd, which is also known as an indirect subsidiary of Macau Legend. Throughout the execution of the deal, a total of four transactions were scheduled to take place, the first one being a cash deposit amounting to HK$460 million. At the end of March there was an official announcement stating the final stages of the said deal would have to be postponed until the end of April, and as it turned out the promise was kept precisely to the date.
Future Prospects for the Casino Resort
The entirety of the equity in the indirect subsidiary company of Macau Legend was sold according to the plan devised back in November 2017. According to the latest information regarding the transaction which took place, the expected gain before tax from the said deal amounts to as much as HKD3.3 billion (US$420.5 million).
The estimation made was based on calculations which take into account the purchase price as well as net liabilities value. It also adds to the tally the carrying amount of the sale loan of New Macau Landmark Management as of the last day of the year, 31st December 2017.
Along the core arrangement which will see the sale, there was a second one which delves into the specifics of the purchase. According to it all parties involved in the deal have reached an agreement which states that the entire income amassed until 27th April is rightfully belonging to the company selling the casino resort. Everything generated from 28th April onwards would legally belong to the purchasers of the Landmark Macau.
Within the conditions of the said agreement Hong Hock Development Co Ltd which is a unit wholly-owned by Macau Legend, will receive the permission to develop the gambling facility on the premises of Landmark Macau for as long as SJM Holdings remains at its gaming concessionaire position in Macau. What should be taken into account, is that SJM Holdings has a license for operation which is expected to expire in 2020.
