The company developing the Cotai integrated resort will receive about US$500 million to invest in Phase 2 of construction.
Macau.- Melco International Development Limited has announced its purchase of new Class A shares issued by Studio City International Holdings.
Through the agreement, Studio City will obtain approximately US$500 million, which will be used to finance the development of Phase 2 of its Cotai integrated resort, as well as for general corporate purposes such as financing working capital and repayment of debts.
The Melco subsidiary was already the majority owner in the Studio City integrated resort. This latest operation will increase its share from 54.1 per cent to 54.7 per cent.
Melco said in a filing to the Honk Kong Stock Exchange that it will acquire 72,185,488 Class A shares at a price of US$3.89 each, plus an aggregate subscription price of US$280,801,548.32.
In addition, the minority stakeholder, New Cotai, also agreed to purchase about 49,119,164 Class A shares, at US$3.89 each plus an aggregate subscription price of US$191,073,547.96. This will allow the firm to increase its stake in the integrated resort from 36.82 per cent to 37.22 per cent.
In July, Melco acquired another series of private placements from Studio City for a value of US$500 million. The firm’s chairman, Lawrence Ho Yau Lung, later purchased another US$60 million in notes from the Cotai holding.