Levo Chan, the CEO of Macau junket promotor Tak Chun Group, has increased his stake in Macau Legend Development Ltd to 33.19% and joined the board as Co-Chairman and executive director following completion of a mandatory cash offer for all outstanding shares.
Macau Legend announced late Tuesday that the offer, which followed Chan’s acquisition of a 20.65% stake in the company in September, had closed with shareholders representing 771,247,828 shares or 12.44% of total issued share capital accepting the offer. The full offer was for up to 29.19% of issued share capital.
Closure of the mandatory offer will see the 48-year-old pay a consideration of just over HK$809.8 million (US$104.5 million), further cementing his recently acquired status as the company’s single largest individual shareholder.
As previously reported by Inside Asian Gaming, Chan acquired a 20.65% stake in Macau Legend in September – lifting his stake to 20.75% – via his wholly-owned investment firm Perfect Achiever Group Ltd for a total consideration of HK$1.28 billion (US$165.2 million).
The subsequent offer for remaining outstanding shares, as required under Hong Kong Stock Exchange rules, did not include the interests held by key executives of the company, including founder and Chairman David Chow, CEO Melinda Chan, fellow directors Sheldon Trainer and Li Chi Keung, or Chow’s mother and former director, Madam Lam Fong Ngo. It also did not include the 3.37% stake held by SJM Holdings subsidiary Vast Field Investments Ltd.
With the exception of Vast Field Investments, Chan is instead acting in concert with the group, referred to as the Offeror Concert Party Group, which now represents 79.88% of issued share capital and has named Chan as official leader and representative of the group.
Closure of the offer has also seen a series of boardroom changes take effect, with Chan appointed Co-Chairman and executive director and 36-year-old Tsang Ka Hung – also Chief Financial Officer of Tak Chun’s junket arm, Tak Chun Gaming Promotion Company Limited – named executive director.
Donald Chow Wan Hok, Sheldon Trainor-DeGirolamo, Carl Tong Ka Wing and Mark Fong Chung have all resigned as directors while founder David Chow Kam Fai has been re-designated as a non-executive director but will remain as Co-Chairman alongside Chan. Chow’s wife Melinda Chan also stays on as CEO.
Macau Legend has previously stated that Chan has no intention of making substantial changes to the existing operations of the company or to terminate employees, but that he would conduct a review on its operations and financial position “for the purpose of formulating business plans and strategies for the Group’s long-term business development and will explore other business opportunities for the Group.”