Business
MGM China To Inject $594 Million Into Macau Unit to Re-tender For Casino License
(CTN News) – In preparation for a re-tender for a Macau gaming license, casino operator MGM China Holding (2282.HK) said it would inject 4.8 billion patacas ($594 million) into its MGM Grande Paradise unit.
As part of the revised gaming law released earlier this year, Macau’s legislature required casinos to have a minimum capital requirement of 5 billion patacas, and the concessionaire’s managing director must hold at least 15% of the company’s equity.
The Chinese arm of MGM Resorts International said in a filing on Sunday that co-chairwoman Pansy Ho will fill the position if the company wins the new concession.
MGM Grande Paradise will issue 4.07 million Class A shares to the company at an aggregate subscription price of 4.07 billion patacas and will issue and transfer another 730,000 Class B shares to Ho.
Upon completion of the deal, MGM China and Ho’s stakes in MGM Grande Paradise will increase to 84.6% and 15%, respectively, while MGM Resort International’s stake will decrease to 0.4% from 10%.
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