Melco Resorts & Entertainment has announced plans to acquire all of Melco International Development’s holdings in an entity that’s developing an integrated resort on the Greek-controlled island of Cyprus. The transaction will be made through $375 million in stock.
Melco International holds a 75 percent interest in ICR Cyprus Holdings, the force behind City of Dreams Mediterranean. The resort, scheduled to open in 2021, will reportedly be the largest IR in Europe.
In a filing to the Securities and Exchange Commission Melco said it will finance the operation through 55.5 million ordinary shares. The Macau News Agency reported that Melco International will hold approximately 55.8 percent of the total issued shares of Melco Resorts after the completion of the sale. Melco directors say they believe the sale is an opportunity for the group to increase efficiencies at City of Dreams Mediterranean while also broadening its global footprint.
According to Asia Gaming Brief, under the proposal Melco will provide corporate-level management services to the ICR Group for €2 million (US$2.3 million) each year with the potential for additional shares and dividends.
The transaction is subject to approval by regulatory authorities and a new shareholders’ agreement with Melco’s minority partner in City of Dreams Mediterranean, Cyprus Phassouri (Zakaki) Ltd.
ICR Cyprus holds a 30-year gaming license on Cyprus, including a 15-year period of exclusivity, and may also operate up to four satellite casinos. On completion, City of Dreams Mediterranean will have a 7,500-square-meter (80,000-square-foot) casino with more than 100 table games and 1,000 slot machines, plus a five-star, 500-room hotel restaurants and cafeterias, an outdoor amphitheater and MICE facilities.
