Macau Legend to Dispute the Termination of Its Cape Verde Concession

Macau Legend Development Limited, an investment holding company that owns and operates gaming facilities in Macau and beyond, has disagreed with the Cape Verde government’s decision to terminate its concession. The holding plans to dispute the decision and is seeking legal advice.

The Inaction Did Not Sit Well with the Government

For context, the Cape Verde government recently announced the cancelation of its Establishment Convention and its Addendum with Macau Legend’s MLD Cabo Verde Resorts SA and MLD Cabo Verde Entretenimento SA subsidiaries.

The government cited the company’s alleged violation of its obligation as the reason for the decision. As a result, Cape Verde authorities said that they had “no choice but to proceed with the termination of the contracts.”

Macau Legends, for context, was set to realize a EUR 250 million casino and hospitality project in Cape Verde’s capital city, Pria. However, according to the government, the company had violated the agreement by, among other things, transferring over 20% of its share capital without the government’s approval. This happened in 2020 when the company sold a 20.65% stake to Macau junket businessman Levo Chan.

In addition, the Cape Verde government pointed out that the project’s halt cannot be related to the COVID-19 pandemic, considering that the construction is yet to be resumed.

Macau Legend Will Dispute the Allegations

The original agreement was penned in 2015, paving the way for the casino resort’s groundbreaking ceremony in 2016. The property would have included a casino, hotel rooms, a shopping district and a marina. However, the project was eventually put on hold, resulting in little progress being made for several years.

After considering the state of affairs, the Cape Verde authorities decided to terminate Macau Legend’s concession, arguing that the company’s subsidiaries have had every opportunity to resume the construction, negotiate the controversial shares sale or transfer the project to another party that would have been interested in continuing it.

The license termination would return the land and all assets, including those constructed by Macau Legend, to the government.

Macau Legend responded to the government’s intentions, saying that it is currently seeking legal advice on the appropriate cause of action. The company vowed to contest the Cape Verde government’s allegations and fight to protect its shareholders’ interests.