John Sario, a representative of Sanum Investments said the company was not consulted prior to the sale to Macau Legend, adding that the latest decision is a violation to the 2014 settlement, Macau Daily Times reports.
Last week, Macau Legend stated it had entered into a US$42 million project development agreement with the Laos government to purchase the Savan Vegas Hotel and Entertainment complex.
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.
According to the Times, John Sario said that Sanum Investments “will only support a sale that is for maximum value, estimated to be US250 million.”
“The Settlement Agreement between Laos and Lao Holdings/Sanum states that 100 percent of the sales proceeds will be paid into an escrow in Singapore,” said Sario, the escrow will then subsequently distribute the proceeds in the proportions stated in the agreement (80 percent to Sanum and 20pct to the Laos government), he added.
Sario reaffirmed that the company has no intention to “stand quietly while Savan and the slot clubs are sold for a price that is a fraction of the price they are worth.”
Earlier this month, Lao Holdings N.V., the parent company of Sanum Investments filed three legal actions against the Lao Government. The legal action was related to the violation of the 2014 settlement agreement reached by both parties, stipulating the sale of the Savan Vegas Hotel and Casino, and other assets, for maximum value to the benefit of all parties. These actions have been taken in direct response to the expropriation and planned sale of Sanum’s gaming and hotel complex located in Savannakhet, Laos.
The first action, filed pursuant to the terms of the 2014 settlement agreement, alleges that the Lao Government materially breached the settlement agreement when it seized control over all of Lao Holdings’ commercial properties in Laos, including the Savan Vegas Casino.
Lao Holdings’ new action under the Netherlands-Laos BIT arises from the renewed efforts of the Lao Government to impose taxes on the Savan Vegas Casino that both provided the pretext for its seizure and will prevent it from being sold for a fair market price.
A third action, pursued in the United States, has been commenced against San Marco Capital Partners, LLC as well as its sole owner and employee Kelly Gass, alleging that both are responsible for the current mismanagement of sale efforts of the Casino.
Sanum and Lao Holdings have said they will continue to evaluate the situation and take actions as required to protect their interests.