Casino operator MGM China Holdings, the Chinese arm of US-based MGM Resort International will inject MOP 4.8bn ($594mn) into its Macau unit MGM Grande Paradise to re-tender for a license to operate its gaming business. As per the new gaming laws in Macau, a casino needs a minimum capital requirement of MOP 5bn ($620mn), and the managing director (MD) must be a Macau permanent resident holding at least 15% of its capital. In a filing, the company said that if MGM is awarded the new concession, co-chairperson Pansy Ho will be the MD. MGM Grande Paradise will issue 4.07mn Class A shares to the company at an aggregate subscription price of MOP 4.07bn ($490mn), and transfer another 730k Class B shares to Pansy Ho. Post this deal, MGM Resort International’s stake will be down to 0.4% from 10%, while MGM China and Ho’s holdings in MGM Grande Paradise will rise to 84.6% and 15% respectively.
MGM China’s 5.875% 2026s traded higher 0.38 points to 86.88 to yield 10.19%.
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