MGM China Holdings Ltd. will inject 4.8 billion patacas ($594 million) into a subsidiary to qualify the unit to bid for a new Macau casino license ahead of the expiry of existing permits at the end of this year.
The injection will enable MGM Grand Paradise to fulfill a requirement that license-holding companies must have at least 5 billion patacas in capital, according to a Hong Kong stock exchange filing Sunday. If the tender is successful, Pansy Ho will serve as managing director of the unit for the entire term of the license.
Upon completion of the share arrangement, MGM China will hold almost 85% of the unit’s capital and voting rights, Ho will have 15% and MGM China’s parent MGM Resorts International will own 0.4%, down from the current 10%, MGM China said in the statement.
Read original article