MGM China has announced a capital restructuring to fulfil its new gaming concession requirements.<\/p>\n\n\n\n\n\n\n\n
Macau.-\u00a0MGM China<\/strong>\u00a0has 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\u00a010-year gaming concession<\/a>\u00a0in Macau\u2019s casino concession retender. <\/p>\n\n\n\n Macau\u2019s revised gaming law<\/a>\u00a0requires 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.<\/p>\n\n\n\n MGM China has transferred 730,000 Class B Subscribed Shares to\u00a0Pansy Ho<\/strong>, 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.<\/p>\n\n\n\n Sands China<\/a>\u00a0and\u00a0Wynn Macau<\/a>\u00a0have announced similar capital restructurings.<\/p>\n\n\n\n As previously reported by Focus Gaming News, MGM China has entered into an agreement with its US parent company\u00a0MGM Resorts International<\/strong>\u00a0to continue using MGM trademarks. It will pay up to US$173.2m over three years from January 1 2023 until December 31 2025.<\/p>\n\n\n\n The firm said it had been granted the licence to use \u201cMGM\u201d, \u201cMGM Grand\u201d, \u201cMGM Grand Macau\u201d and the MGM lion and other \u201cMGM-related service marks, trademarks, registrations and domain names\u201d owned by MGM Resorts and its subsidiaries.<\/p>\n\n\n\n According to the company filing, MGM China has agreed to pay monthly licence fees calculated at 1.75 per cent<\/strong> 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.<\/p>\n\n\n\n MGM China will also pay up to HKD65m in 2023 for marketing services<\/strong>, rising to a maximum of HKD75m for 2024, and HKD85m for 2025.<\/p>\n","protected":false},"excerpt":{"rendered":" MGM China has announced a capital restructuring to fulfil its new gaming concession requirements.<\/p>\n","protected":false},"author":176,"featured_media":17968,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"MGM China has completed a MOP4.8bn capital restructuring of MGM Grand Paradise to comply with Macau's new MOP5bn registered capital requirement for its recently secured 10-year gaming concession. This move resulted in a revised ownership structure and follows similar actions by other Macau operators. Concurrently, MGM China formalized a new trademark licensing agreement with MGM Resorts International, committing to pay up to US$173.2m over three years for brand usage and additional fees for marketing services.","focusai_entities":"MGM China, MGM Grand Paradise, Stock Exchange of Hong Kong, Pansy Ho, MGM Resorts International, Sands China, Wynn Macau","focusai_location":"Macau, Hong Kong","focusai_target_profile":"ceo_executive (1.0), regulator (1.0), compliance_legal (1.0), operator_casino (0.9), marketing_crm (0.7), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (1.0)","focusai_suggestions":[{"label":"Capital Requirement Impact?","query":"How will the increased registered capital requirements for Macau gaming concessions influence future M&A activity or market consolidation among operators?"},{"label":"Trademark Fee Impact?","query":"What is the projected impact of the new trademark and marketing service fees on MGM China's net profit margins and shareholder returns over the next three fiscal years?"}],"footnotes":""},"categories":[157,16338],"tags":[1618],"class_list":["post-777000994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","tag-mgm-china"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777000994","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777000994"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777000994\/revisions"}],"predecessor-version":[{"id":777001018,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777000994\/revisions\/777001018"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/17968"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777000994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777000994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777000994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}MGM China enters into new trademark agreement with MGM Resorts<\/h2>\n\n\n\n