It was announced that a partnership agreement between Dynam Japan Holdings Co Ltd and Macau Legend Development Ltd is not going to be inked. The two companies entered into talks related to their possible joint venture concerning the gaming operations. They have been negotiating the terms for a pretty long time and it became clear that, for the time being, the idea for working in collaboration is to be abandoned.
A few hours ago, a special filing on the matter was released and it was said that the so called memorandum of understanding has just expired and there was no possibility for it to be extended.
The companies failed at reaching an agreement before the expiration date, which was on Monday.
A representative of Macau Legend was reached for a comment and said that despite the fact that the memorandum of understanding is not valid anymore, there is still possibility for the two companies to start working together but that might eventually happen at a later stage.
Currently, Macau Legends is holding two licenses, which makes it eligible for providing their services in Macau.
Back in 2013, the two companies, which are listed on the Hong Kong stock exchange, entered into the memorandum of understanding. Later, it has been extended two times.
Shortly after Dynam had successfully negotiated the extension of the memorandum of understanding, a company’s representative announced that the establishment of pachinko machines is expected to become a fact at the beginning of 2014 or as soon as the Macau gambling officials give their consent to the availability of the Japanese gambling facilities in the region.
According to the information released in different reports, the investment Dynam has made into Macau Legend was estimated at US$85 million. The pachinko operator also invested as much as US$35 million into buying shares in Macau Legend. Then, back in July 2013, the global public offering took place in Hong Kong.
According to the initial plan, Dynam was supposed to install at least 100 pachinko machines and some other gaming facilities in the venue managed by Macau Legends that is located at the Fisherman’s Wharf. The area is currently undergoing considerable redevelopment and if the deal between Dynam and Macau Legends had been signed, they would have shared impressive revenues.
Apart from the establishment of gambling facilities, the memorandum ensured the promotion of the hotels and casinos managed by Macau Legends. Dynam was supposed to popularize them in Japan and South Korea and attract VIP and mass players.
