MGM China injects US$594m into Macau unit to re-tender for casino licence

CASINO operator MGM China Holding said it will inject 4.8 billion patacas (S$826.7 million) into its MGM Grande Paradise unit as it prepares to re-tender for a licence to operate its gaming business in Macau.

Under the terms of a revised gaming law released by Macau’s legislature earlier this year, a casino needs a minimum capital requirement of 5 billion patacas, and the managing director of the concessionaire must be a Macau permanent resident holding at least 15 per cent of its capital.

MGM China, the Chinese arm of US gambling giant MGM Resorts International, said in a filing on Sunday (Aug 21) that if the company is awarded the new concession, co-chairperson Pansy Ho will fill that role.

MGM Grande Paradise will issue 4.07 million Class A shares to the company at an aggregate subscription price of 4.07 billion patacas, MGM China said in the filing, and issue and transfer another 730,000 Class B shares to Ho.

After the completion of the deal, MGM China and Ho’s holdings in MGM Grande Paradise will increase to 84.6 per cent and 15 per cent respectively, while MGM Resort International’s stake will drop to 0.4 per cent from 10 per cent. REUTERS