HONG KONG (Reuters) - Casino operator MGM China (OTC:MCHVY) Holding said it will inject 4.8 billion patacas ($594 million) into its MGM Grande Paradise unit as it prepares to re-tender for a licence to operate its gaming business in Macau.
Under the terms of a revised gaming law released by Macau's legislature earlier this year, a casino needs a minimum capital requirement of 5 billion patacas, and the managing director of the concessionaire must be a Macau permanent resident holding at least 15% of its capital.
MGM China, the Chinese arm of U.S. gambling giant MGM Resorts (NYSE:MGM) International, said in a filing on Sunday that if the company is awarded the new concession, co-chairperson Pansy Ho will fill that role.
MGM Grande Paradise will issue 4.07 million Class A shares to the company at an aggregate subscription price of 4.07 billion patacas, MGM China said in the filing, and issue and transfer another 730,000 Class B shares to Ho.
After the completion of the deal, MGM China and Ho's holdings in MGM Grande Paradise will increase to 84.6% and 15% respectively, while MGM Resort International's stake will drop to 0.4% from 10%.
($1 = 8.0810 patacas)