Gaming to be added at Studio City Macau
Macau casino magnate Lawrence Ho just increased his equity stake in global gaming operator Melco Resorts & Entertainment Ltd. Ho or entities controlled by Ho now own 55.8 percent of Melco shares.
In April 2018, Ho owned just over 51 percent of Melco Resorts. Last November, he upped his stake in the casino operator to 54.6 percent. Ho personally holds 13.25 million shares in the company, and controls more through his interests in Melco International Development Ltd., the Hong Kong-listed parent firm of Melco Resorts.
GGRAsia reports that Ho’s controlling position in Melco Resorts was aided by the ongoing US$500 million share repurchase program that began in November. Since then, Melco Resorts has repurchased about 10 million of its American depository shares. Each Melco Resorts’ American depository share is equivalent to three shares in the company.
As of February 21, Ho and his interests owned more than 836 million ordinary shares of Melco International, or approximately 55.05 percent of outstanding ordinary shares. Melco Resorts operates casinos in Macau and the Philippines, and is developing an integrated resort in Cyprus. Melco is also planning to bid on an integrated resort license in Japan. The firm recently posted a 57.7 percent year-on-year increase in profit for the fourth quarter of 2018.
According to Inside Asian Gaming, Melco said the program “reflects the confidence of the company in Melco Resorts’ long-term strategy and growth prospects.”
In other Melco news, the operator has reconsidered his previous plan to eschew gaming in Phase II of Studio City in Macau. During the February 20 earnings call, Ho said “the further expansion of Studio City is expected to have two hotel towers, a water park, a cineplex and additional gaming space.”
“Our company all along has attached great importance to non-gaming amenities as evidenced by Morpheus, so Phase II will really place the focus on other types of entertainment,” Ho said last year.
