Melco International Development Ltd, Hong Kong-listed parent of Asian casino operator Melco Resorts and Entertainment Ltd, has announced a distribution in specie of US$5.4 million it made from the spin-off and listing on the New York Stock Exchange of the Studio City casino resort in Macau. The venue is majority owned by Melco Resorts.
Melco International told the Hong Kong bourse on Friday that the distribution would take place on December 31.
Studio City was listed in New York on October 18 as Studio City International Holdings Ltd. The Studio City IPO of 28.75 million American depositary shares, each one equivalent to four ordinary shares – for US$12.50 apiece – raised gross proceeds of about US$359.4 million. The shares rose as much as 48 percent on their trading debut in New York. The company’s stock price closed at US$15.50 a share, up 24 percent after its first trading day.
Melco International said its chairman and chief executive Lawrence Ho Yau Lung and his associates had opted to take their portion of the distribution in specie in cash, as the rules allowed them to. They will get US$2.9 million, as according to Melco International’s filing, Mr Ho and his associates were entitled to 53.6-percent of the payout.
Melco International said before the IPO that it would make a distribution of 1.5 percent of its share of the gross proceeds and subscribe to ordinary shares equivalent to 200,094 American depositary shares at the final offer price to assure shareholders of an entitlement to the depositary shares by way of a distribution in specie.
An approximately 38 percent stake in Studio City remains in the hands of New Cotai Holdings LLC, which is controlled by US investment firms Silver Point Capital LP and Oaktree Capital Management LP.
Studio City International Holdings is the entity that controls the Studio City casino resort. The company first considered in August last year floating the property.
Sep 19, 2018Nowadays, millennials, people who were born in the 1980s or...
Aug 16, 2018Food and drink have been heavily marketed as part of Macau...
Jun 27, 2018Macau’s gaming law needs to be amended in order to...
Nov 13, 2018The Macau Statistics and Census Service estimates that Typhoon Mangkhut caused economic losses to the city amounting to MOP1.55 billion (about US$192.1 million), including MOP960 million in losses to...
Nov 13, 2018
Nov 13, 2018
Year-on-year decline in net profit reported by Asian casino operator Bloomberry Resorts in the third quarter