MGM China has announced that Pansy Ho Chiu King will remain Managing Director of MGM Grand Paradise, one of the city’s current gaming subconcessionaires. It is stipulated by the new game law.
In documents filed with the Hong Kong Stock Exchange, MGM China Holdings Ltd shows that approximately MOP4.8 billion (US$594 million) will be injected into MGM Grand Paradise. Requirements under the SAR’s Amended Gambling Law and Bidding Regulations.
The amended Gambling Law requires gambling concessionaires to maintain a minimum share capital of MOP5 billion, a significant increase compared to the previous requirement of MOP200 million.
MGM Grand Paradise will also issue 4,070,000 Class A shares and 730,000 Class B shares for allocation to MGM China, and 730,000 Class B shares will be transferred to Pansy Ho on MOP 1.
After the transaction closes, MGM China will own 84.6% of the voting rights of MGM Grand Paradise, Mr. Ho will own 15% and MGM Resorts International will own 0.4%.
MGM China said in its filing that the transaction was made to comply with the requirements set out in the new gaming law. This means that the managing director of the gaming concessionaire must be a permanent resident of the Macau Special Administrative Region and hold at least 15%. of the share capital of the business.
Meanwhile, Pansy Ho would receive an annual fee of $8 million as managing director and incentive payments based on MGM Grand Paradise’s average pre-interest earnings if the game’s concession bid is successful. increase. Taxes, depreciation and amortization (EBITDA) can be up to $95 million over a 10-year concession period.
Earlier this month, MGM China Holdings reported a negative adjusted property income (before interest, tax, depreciation and amortization) (EBITDA) of HK$382.4 million for the second quarter of 2022.
MGM China also reported a 53.5% year-on-year decline in revenue in the second quarter, the operator’s announcement to the Hong Kong Stock Exchange said.