Melco Resorts to repurchase US$169.8m in shares from parent company

Melco Resorts & Entertainment will buy back 40.4m shares from Melco Leisure to improve the company’s liquidity.

Macau.- Melco Resorts & Entertainment has announced through a company filing that it will repurchase 40,373,076 of the company’s ordinary shares from parent company Melco Leisure for MOP1.37bn (US$169.8m). The repurchase represents approximately 2.95 per cent of issued shares as of March 8, priced US$4.2067 per share.

Prior to the transaction, Melco Leisure owned approximately 727.7m shares, or about 53.1 per cent, of the Company’s outstanding shares. It will now own approximately 687.4m shares, which, following the cancellation of the repurchased shares, will represent about 51.7 per cent of outstanding shares. 

According to the directors of Melco International Development, the re-acquisition is an opportunity to improve the liquidity of the company.

Melco Resorts’ net loss for the financial year ended December 31 was US$930.5m, an increase over US$811.8m a year earlier. The company also reported total operating revenues were approximately US$337.1m in the fourth quarter of 2022, around 30 per cent lower than the US$480.6m reported the previous year.