In a decisive move, Macau Legend Development Ltd, a key player in the leisure and hospitality sector listed on the Hong Kong stock exchange, has successfully secured shareholder approval for a comprehensive capital reorganisation initiative. This strategic step is aimed at facilitating a rights issue, crucial for altering the capital configuration of the company to suit evolving corporate needs.
During an extraordinary general meeting, stakeholders concurred with the board’s proposal which included transiting the firm’s domicile from the Cayman Islands to Bermuda alongside a reduction in share capital. These measures are pivotal in supporting the anticipated rights issue which seeks to enhance the company’s capital structure.
The rights issue is set to raise approximately HKD93.0 million, equivalent to US$12.0 million, with expectations of net proceeds amounting to HKD86.9 million post deduction of associated expenses. Macau Legend plans to allocate these funds towards bolstering general working capital.
Changes Following Operational Challenges
Macau Legend operates the renowned waterside Macau Fisherman’s Wharf, located on Macau’s peninsula, a significant asset in the company's portfolio. However, recent financial reports present a challenging scenario, with the company suffering a staggering loss of nearly HKD1.42 billion in the initial half of 2025. The revenue observed a contraction of 7.6% year-on-year, recording HKD168.1 million.
A specific highlight is the cessation of operations at the satellite casino venue, Casino Legend Palace. This venue faced challenges after its operational rights with SJM Resorts Ltd ended on November 12 at 11:59 pm. This development has significantly impacted the firm's revenue streams. Despite these setbacks, the company aims to recalibrate with a newly adjusted timetable for the rights issue. The distribution of prospectus documents is expected within the current month, contingent on the fruition of the capital reorganisation.
Capital Reorganisation to Aid Future Endeavors
Key to Macau Legend’s plans is the detailed reorganisation strategy, which involves reducing the par value of its shares from HKD1.00 to HKD0.01 following the change of domicile. The company has outlined ambitions to issue a maximum of 310,059,356 rights shares at a subscription price of HKD0.3 per share. Financial health remains a pressing concern with an impairment loss of slightly over HKD1.27 billion recorded in the first half of the year, largely attributed to its satellite gaming operations.
Further reports indicate that as of June 30, Macau Legend had net current liabilities about HKD2.56 billion, with cash and bank balances amounting to HKD21.7 million, reinforcing the necessity for restructuring. These strategic moves underscore the firm’s ongoing commitment to realigning its financial architecture in preparation for prospective growth and sustainability measures.
By anchoring their focus on streamlining the capital structure, Macau Legend aims to navigate through current challenges and position itself optimally for future expansions.
Source: Macau Legend's shareholders nod capital reorganisation, pave way for rights issue, GGRAsia, December 3, 2025.
Posted by Wizard
Dec 03 2025
Dec 03 2025
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