MGM China announces capital restructuring
MGM China has announced a capital restructuring to fulfil its new gaming concession requirements.
Macau.- MGM China has announced in a filing to the Stock Exchange of Hong Kong states that it has injected MOP4.8bn into MGM Grand Paradise. The move comes after it won a new 10-year gaming concession in Macau’s casino concession retender.
Macau’s revised gaming law requires casino operators to have a registered capital of at least MOP5bn during the validity of their licences. MGM Grand Paradise issued and allotted 4,070,000 Class A Subscribed Shares to its parent company at a subscription price of MOP4.07bn. Meanwhile, 730,000 Class B Subscribed Shares have been allocated to MGM China at a price of MOP730m.
MGM China has transferred 730,000 Class B Subscribed Shares to Pansy Ho, co-chairperson and managing director of MGM China, at a nominal price of MOP1. MGM China now owns 84.6 per cent and Ho 15 per cent of MGM Grand Paradise, while MGM Resorts International owns the rest.
Sands China and Wynn Macau have announced similar capital restructurings.
MGM China enters into new trademark agreement with MGM Resorts
As previously reported by Focus Gaming News, MGM China has entered into an agreement with its US parent company MGM Resorts International to continue using MGM trademarks. It will pay up to US$173.2m over three years from January 1 2023 until December 31 2025.
The firm said it had been granted the licence to use “MGM”, “MGM Grand”, “MGM Grand Macau” and the MGM lion and other “MGM-related service marks, trademarks, registrations and domain names” owned by MGM Resorts and its subsidiaries.
According to the company filing, MGM China has agreed to pay monthly licence fees calculated at 1.75 per cent of its consolidated gross monthly revenues, subject to an annual cap of US$55.6m for 2023, US$57.6m for 2024 and US$60.0m for 2025. The fees will be paid by the 15th day of each following month.
MGM China will also pay up to HKD65m in 2023 for marketing services, rising to a maximum of HKD75m for 2024, and HKD85m for 2025.
