Macau Legend Development Sold A Chunk Of Holdings To Tak Chun Group

Article by : Helen Dec 9, 2020

It is not a secret that the Covid-19 pandemic generates difficulties, but once the Macau gambling industry rebounds, several investors will make a considerable profit. Levo Chan, the CEO of Macau gambling junket firm Tak Chun Group acquires a 20.65% stake in Macau Legend Development company in September. By increasing his holdings, he became the second-largest shareholder and currently controls a 20.75% stake. This acquisition has allowed Levo Chan to take up the post of Executive Director and co-chairman of the company.

The company decided to sell a significant stake after it had faced a loss of HK$550.2 million for the first six months in 2020. Chan’s goal was to increase his assets, and this stake in Macau Legend cost him $162.2 million. The acquisition was made through his own investment firm Perfect Achiever Group Ltd, and the details were made public on the Hong Kong Stock Exchange. However, Levo Chan had decided to continue the process of acquisition and bought an extra 771.24 million shares, meaning he received 12.44% of the total issued share capital. The company’s stock was trading at $0.15, but on November 19 it fell to $0.13, and instead of $104.5 million that Chan had to pay, he probably would pay less. Not to mention that the highest pre-pandemic share price was $0.20 and it was recorded in summer 2018.

According to recent changes, Levo Chan and his spouse are the largest shareholders and have got even more holdings than the founder of Macau Legend and his spouse.

David Chow Kam Fai and Melinda Chan Mei Yi are left with a 9.89% share after they sold 20% of their stake. At the same time, 18.03% share in Macau Legend is held by Li Chi Keung, the chairman of junket group Golden Glove. The wife of Stanley Ho, the gaming oligarch, is holding a 16.28% share in the company.

There are some key executives at Macau Legend whose holdings can’t be bought by Chan. So, the holdings owned by CEO Melinda Chan, Chairman, and founder David Chow, Madam Lam Fong Ngo, the founder’s mother, and directors Li Chi Keung and Sheldon Trainer won’t be transmitted to Chan. He isn’t able to buy shares that belong to Vast Field Investment Ltd as well. Anyway, the businessman’s investment company is going to work with the Offeror Concert Party Group, which has 79.88% of Macau Legend and doesn’t include Vast Field.

Except for some non-gaming entertainment properties and hotels, Macau Legend provides gaming services to SJM Holdings at Legend Palace Casino, Landmark Casino, and Babylon Casino. The company also operates the Savan Legend Resorts in Laos and Cape Verde and is going to develop entertainment complexes and tourism in these regions.

After the acquisition, changes in the Macau Legend board have taken place. Some directors handed in their resignation, and Mark Fong Chung, Donald Chow Wan Hok, Carl Tong Ka Wing, and Sheldon Trainor-DeGirolamo have left office. While Chow has taken over as co-chair and a non-executive director, the chief financial officer for Tak Chun Group’s junket operations, Tsang Ka Hung, will take up the posts of Executive Director, Chief Financial Officer, and company secretary. Macau Legend’s CEO hasn’t changed, and Melinda Chan remains in her post. Gaming experts noted that changes in Macau Legend might lead to liquidity improvements and show how the junket operator is merging with resort operations.

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Helen

Chief Editor

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