Casino operator Macau Legend has announced a delay in its proposed rights issue due to an upcoming capital reorganisation. The company, listed on the Hong Kong Stock Exchange, plans to change its domicile from the Cayman Islands to Bermuda and undertake a capital reduction.
This capital reorganisation is necessary, the company says, to meet legal and procedural requirements under Cayman Islands law for the rights issue to proceed. In making the move, Macau Legend aims to enhance its capital structure and gain greater flexibility for future corporate actions.
As a result of the additional time needed for the reorganisation, the expected timetable for the rights issue has been adjusted. A supplemental agreement to the underwriting agreement has been signed to reflect these changes and the revised schedule. Macau Legend has emphasised that neither the company nor its co-underwriters have altered their intention to proceed with the rights issue.
Under the capital reorganisation, the company will de-register in the Cayman Islands and continue as an exempted company under Bermuda law.
This move will not affect the company’s continuity or its listing status on the Stock Exchange. However, following the change of domicile, the nominal value of shares will be reduced from HK$1.00 to HK$0.01.
[See more: Macau Legend issues profit warning as Legend Palace prepares to shutter]
Further details regarding the capital reorganisation will be announced in due course. The despatch of prospectus documents, which were initially expected by 31 October, has been postponed to on or before 31 December. This delay is attributed to the time required to complete the capital reorganisation steps and finalise the information for the prospectus documents.
The supplemental agreement, entered into on 27 October, also introduces an additional condition for the completion of the rights issue: the capital reorganisation must be fully completed in accordance with all applicable laws.
Shareholders and potential investors are cautioned that the proposed rights issue is conditional upon the underwriting agreement (as amended) becoming unconditional and not being terminated. If this condition is not met, the rights issue will not proceed. As of the announcement date, there have been no events that would lead to the termination of the underwriting agreement, and neither the company nor the co-underwriters intend to terminate it.
In its filing to the Hong Kong Stock Exchange, the company reminded investors to exercise caution when dealing in existing shares and nil-paid rights shares and to consult professional advisers if in doubt.
This article was drafted by AI before being reviewed by an editor.
