Macau Legend Signs Definitive Sale Documents With Lao Government for Savan Vegas
Macau Legend Development Limited (Macau Legend) today has signed the definitive sale documents, including the Project Development Agreement (“PDA”), the Asset Purchase Agreement (“APA”), the Flat Tax Agreement (“FTA”) and Land Lease Agreement (“LLA”) with a company wholly-owned by the Government of the Lao People’s Democratic Republic (“Lao PDR”) to purchase the Savan Vegas Hotel and Entertainment Complex, a full-service casino, hotel and resort located in Savannakhet Province in Laos.
Deputy Minister Dr. Bounthavy Sisouphanthong, of the Ministry of Planning and Investment, Vice Minister Mr. Sila Viengkeo, of the Ministry of Finance, Vice Governor of Savannakhet Province Mr. Thonekeo Phoutthakayalath and the Co-Chairman, Executive Director and Chief Executive Officer of Macau Legend, Mr. David Chow, signed the PDA, APA, FTA and LLA which signifies a new era of international development by Macau Legend.
The signing ceremony was officiated by Deputy Prime Minister and Minister of Finance, H.E. Somdy Douangdy and Minister of Planning and Investment, Dr. Souphanh Keomixay.
Minister Dr. Souphanh stated, “The investments from the People’s Republic of China have contributed to the economic development of Laos. The transaction we are signing today with Macau Legend is another example of this and we are confident that this company has the experience and track record in operating and developing high quality integrated tourist projects. The Government of Lao looks forward to working with Macau Legend in the transformation of Savannakhet as a center for tourism in Laos.”
Co-Chairman, Executive Director and Chief Executive Officer of Macau Legend, Mr. David Chow, said, “We sincerely thank the Government of the Lao PDR for their support and trust in Macau Legend and we have a shared vision with the Government on both the transformation of the existing Savan Vegas Casino and Hotel as well as development of the proposed new integrated resort by our Company in Savannakhet. Macau Legend is committed to developing Savannakhet into a tourism center. In addition, it is our company’s responsibility as a private sector business to follow the objective laid out in the One-Belt One-Road policy.”
The acquisition of Savan Vegas Hotel and Entertainment Complex was approved in an Extraordinary Shareholders Meeting of the Company held on 18 August 2016.
Savan Vegas Hotel and Entertainment Complex is located on 50 hectares, and currently features gaming facilities with 92 tables and 493 slot machines; a contemporary 472 room hotel and convention centre, restaurants, bars and other dining facilities, spa services, recreational facilities, retail shopping facilities, ATMs, and transportation and car rental services.
The PDA has an initial term of 50 years, and subject to fulfillment of all obligations by Macau Legend for the initial term, may be extended for an additional period up to another 49 years. During the term of the PDA, the Government of the Lao PDR shall not grant to any third party any licence, permit or concession authorizing such third party to operate any gaming activities within the exclusivity zone (which consists of the provinces of Bolikhamsay, Khammouane and Savannakhet of the Lao PDR) without the prior written consent of Macau Legend.
“Savan Vegas is located just on the border with Thailand and is an area that the Government of the Lao PDR has earmarked as part of its development strategy. It enjoys close proximity to an international airport to cater for the strong feeder markets from Thailand, Vietnam and China as well as the visitors from Cambodia, Malaysia and Singapore. We plan to leverage on Macau Legend’s experience and connections to help expand the almost one million annual visitors to Savannakhet,” Mr. Chow said.
In addition to the existing facilities, the parties are also discussing the development by Macau Legend of a land parcel in the Savan Seno Special Economic Zone of the Savannakhet Province of the Lao PDR which is adjacent to the existing Savan Vegas Hotel and Entertainment Complex. The planned integrated resort development will include two golf courses, a 600 room hotel, villas, casino, exhibition hall, medical tourist facilities and a spa, pool facilities, agri-tourism, staff quarters and training facilities.
About Macau Legend Development Limited
Macau Legend Development Limited is one of the leading owners of entertainment and casino gaming facilities and leisure complex in Macau. It currently has two major properties, The Landmark Macau, an award winning integrated hotel, casino and luxury shopping complex, featuring a five-star hotel and Macau’s first theme casino, and MFW, which follows the “Leisure, Tourism, Economic and Multi- Cultural Diversification” policy of the Macau SAR Government, is a waterfront integrated gaming, hotel, convention and entertainment complex located on the outer harbor of the Macau Peninsula. In addition to operating its hotels and non-gaming entertainment facilities, Macau Legend provides gaming services to Sociedade de Jogos de Macau, S.A. at Pharaoh’s Palace Casino, which is located in The Landmark Macau, and Babylon Casino in MFW. In 2015, the Group entered into agreements with Government of Cape Verde and has commenced to develop an integrated leisure, tourism and entertainment complex in Cape Verde. (Website: www.macaulegend.com)