Melco commits US$500m to Studio City

The operator could end up increasing its stake in the Cotai integrated resort.

Macau.- Melco Resorts & Entertainment Limited will acquire a series of private placement offers to support its integrated resort in Cotai, Studio City. 

Melco’s subsidiary in Macau, MCO Cotai Investments Limited, will purchase the series A shares offered by Studio City International Holdings to existing shareholders at a price of US$3.89 each.

In addition, Melco said it “will purchase the maximum number of Unsubscribed Securities available for purchase,” which could lead it to increase its participation in Studio City’s operator.

Studio City International Holdings will receive between US$450 million and US$500 million for the transactions.

Melco not only operates but is also the majority owner of the integrated resort in Cotai. Earlier this year the company said the expansion planned for Studio City had been delayed due to the Covid-19 pandemic.