MGM China Pours $594-M Into Macau Unit As It Seeks To License Macau Casinos

Casino operator MGM China Holding (2282.HK) said it will inject 4.8 billion patacas ($594 million) into its MGM Grande Paradise unit as it prepares to re-tender for a license to operate its gaming business in Macau, Clare Jim reported for Reuters.

Photo Insert: MGM Grande Paradise will issue 4.07 million Class A shares to the company at an aggregate subscription price of 4.07 billion patacas.

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% of its capital.

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-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% and 15% respectively, while MGM Resort International's stake will drop to 0.4% from 10%.

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