MGM China to inject $594 million into Macau unit to revive casino license bidding

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HONG KONG – Casino operator MGM China Holding has announced that it will inject 4.8 billion patacas ($594 million) into its MGM Grande Paradise unit as it prepares to relaunch a license to operate its casino business. games in Macau.

Under the terms of a revised gaming law issued by Macau’s legislature earlier this year, a casino needs a minimum capital of 5 billion patacas, and the concessionaire’s general manager must be a permanent resident of Macau. holding at least 15% of its capital.

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MGM China, the Chinese arm of U.S. gambling giant MGM Resorts International, said in a filing on Sunday that if the company is awarded the new concession, co-chair Pansy Ho will fill the role.

MGM Grande Paradise will issue 4.07 million Class A shares to the company at a total subscription price of 4.07 billion patacas, MGM China said in the filing, and will issue and transfer an additional 730,000 Class B shares. Ah O.

After the deal closes, MGM China’s and Ho’s stakes in MGM Grande Paradise will drop to 84.6% and 15%, respectively, while MGM Resort International’s stake will drop from 10% to 0.4%.

($1 = 8.0810 patacas)

(Reporting by Clare Jim; Editing by Jan Harvey)