Plans to spinoff minority partner
A year after submitting its plans for an initial public offering to the U.S. Securities Exchange Commission, Hong Kong-listed Melco Resorts & Entertainment is moving ahead with the IPO. It will offer shares in Studio City International Holdings, the holding company for the firm’s Studio City integrated resort in Macau.
Studio City is 60 percent owned by Melco Resorts, and 40 percent owned by New Cotai Holdings, a privately owned investment firm. As part of the IPO, Melco will spin off New Cotai, reported Inside Asian Gaming. “Following completion of the proposed spin-off, the company’s interest in Studio City will be reduced although it is intended that the company will remain as Studio City’s majority shareholder after the IPO,” stated Melco International.
Intergameonline.com says analysts have been waiting for Melco to buy out New Cotai’s 40 percent stake as it boosts entertainment offerings at the resort, plans an additional hotel and makes room for more non-gaming amenities.
In a filing to the Hong Kong Stock Exchange last week, Melco International Development Ltd., which owns 52 percent of Melco Resorts, said the IPO is “subject to, among other things, the registration statement being declared effective by the U.S. Securities and Exchange Commission, approval of the relevant stock exchange in the United States, the final decisions of the board of Melco International and the board of directors of Studio City International Holdings and market conditions.
“Accordingly, there is no assurance that the proposed spin-off will take place or as to when they may take place.”
