MGM China to inject $594 million into Macau unit to re-tender for casino license

HONG KONG (Reuters) – On line casino operator MGM China Holding stated it can inject 4.8 billion patacas ($594 million) into its MGM Grande Paradise unit because it prepares to re-tender for a licence to function its gaming enterprise in Macau.

Underneath the phrases of a revised gaming regulation launched by Macau’s legislature earlier this 12 months, a on line casino wants a minimal capital requirement of 5 billion patacas, and the managing director of the concessionaire have to be a Macau everlasting resident holding at the least 15% of its capital.

MGM China, the Chinese language arm of U.S. playing big MGM Resorts Worldwide, stated in a submitting on Sunday that if the corporate is awarded the brand new concession, co-chairperson Pansy Ho will fill that function.

MGM Grande Paradise will subject 4.07 million Class A shares to the corporate at an combination subscription worth of 4.07 billion patacas, MGM China stated within the submitting, and subject and switch one other 730,000 Class B shares to Ho.

After the completion of the deal, MGM China and Ho’s holdings in MGM Grande Paradise will enhance to 84.6% and 15% respectively, whereas MGM Resort Worldwide’s stake will drop to 0.4% from 10%.

($1 = 8.0810 patacas)

(Reporting by Clare Jim; Enhancing by Jan Harvey)