Six bidders have been shortlisted for the acquisition of the Laos casino resort, Savan Vegas Hotel and Entertainment Complex. They are: Macau Legend Development, a Hong Kong-listed operator with casinos in Macau and plans to build a casino resort in Cape Verde; Iao Kun Group, a NASDAQ-listed operator of junkets in Macau and Australia; a consortium led by the Malaysian slot manufacturer RGB International; Hong Kong-based casino operator Silver Heritage Ltd; Groupe Lucien Barriere, a French operator which also has casinos in Switzerland and Egypt; and US investment firm PGP Investors.
The resort is in Savannakhet, a province that shares borders with both Vietnam, where casinos are closed to locals, and Thailand, which bans casino gambling completely. A prospectus document describes the facility as including “a full-service casino, a hotel and numerous leisure offerings.” It was previously controlled by Sanum Investments Ltd and Lao Holdings NV. But the Laos government seized control of operations and last October appointed the US-based investment firm San Marco Capital Partners to organize its sale. Last June newspapers in the US Commonwealth of the Northern Mariana Islands reported police in Laos were conducting a criminal investigation into the boss of the parent company of Sanum Investments and Lao Holdings. He was named as John K Baldwin, principal and chief executive of Bridge Capital LLC, and is accused of bribing Lao officials over US$300,000 to terminate an audit on Savan Vegas, costing the government US$70 million in lost tax revenue.
San Marco said the Laos government had approved its shortlist based on factors including “financial capability and operational expertise.” The winning candidate will be granted a concession to operate the resort for 50 years.
