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

HONG KONG, Aug 21 (Reuters) – Casino operator MGM China Holding (2282.HK) said it would inject 4.8 billion patacas ($594 million) into its MGM Grande Paradise unit as it is preparing to relaunch the call for tenders for an operating license for its games. business 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.

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.

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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)

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Reporting by Clare Jim; Editing by Jan Harvey

Our standards: The Thomson Reuters Trust Principles.

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