Macau Legend Development Limited announced that the transfer and ownership registration of several land parcels it acquired in Cambodia has not been completed within the expected deadline.
In December 2018 the company acquired the entire issued share capital of Howing Enterprises Co. Ltd. from a man named Wang Jieman for US$90 million (HK$697.8 million), with Howing being a company incorporated in Cambodia and holding several parcels of land totalling 1,200 hectares in Siem Reap.
Macau legend intended to build an integrated resort in the area, however, the completion of the acquisition had been delayed until June 26 of this year due to the Covid-19 pandemic.
The agreement includes that the seller was to assist Macau Legend in obtaining the necessary land usage rights for the land to be re-zoned from agricultural to residential/commercial development and register the ownership to Howing.
Accoridng to a recent Hong Kong Stock Exchange filing, Macau Legend states that it is now negotiating with Wang for ‘amicable solutions’ to the issue.
On Its 2020 annual report Macau Legend had indicated that there is ‘uncertainty on the timing on when such transaction can be finalised and the recoverability of the deposit’ connected to the transaction.
This led the company to register an impairment loss of HK$546.9 million to be recognised in last year’s report.
As of 31 December 2020, the group also incurred land processing costs and related tax totalling HK$40.1 million for the transfer of the land. MACAU BUSINESS