Casino services firm Macau Legend Development Limited has announced it has entered into a project development agreement with the Laos government to purchase the Savan Vegas Hotel and Entertainment complex.
According to a filing from the firm to the Hong Kong Stock Exchange on Monday, the Lao government agreed to sell the project at the consideration of US$42 million.
Macau Legend will be responsible to “(i) form the Project Company, (ii) purchase the Project, and (iii) operate the Project Company to engage in the Concession Activities in connection with the Project during the Term,” said the filing.
Last week, electronic gaming machine manufacturer RGB International Bhd announced the tender to operate the Savan Vegas Hotel in Laos had been terminated by the Lao government.
The project development agreement will have an initial term of 50 years commencing on 13 May, 2016, with an option to extend for an additional period not exceeding 49 years after the intial term has ended, said the filing.
The agreement allows Macau legend to operate the project’s gaming tables, semi-automated gaming tables and EGMs, either in the casino or in the form of interactive gaming.
Macau Legend said the agreement will provide the company a “valuable opportunity for the Group to expand its business outside.”