MGM China can invest more if asked by govt: Pansy Ho
MGM China Holdings Ltd is in a “financially sound” position, enabling it to meet any additional concession-related investment if Macau’s annual casino gross gaming revenue (GGR) reaches a MOP180-billion (US$22.3 billion) threshold for such extra commitment, said MGM China’s chairperson Pansy Ho Chiu King, in comments to several media outlets on Tuesday.
“All along, we have been planning the financing for it with our syndicate of banks. It should not be a problem,” stated the MGM China boss.
On the same occasion, she also mentioned the firm would ask the Macau government for permission not only to use some underutilised space at MGM Macau and MGM Cotai, for cultural and arts exhibitions, but also to build a new “themed structure” within the land plot of MGM Cotai.
She indicated investment in the latter might fall under the heading of additional concession-related spending.
When Macau’s market-wide casino GGR reaches MOP180 billion in any one year, the six casino operators are required to increase their collective MOP108.7 billion non-gaming and overseas-marketing spending pledges by up to 20 percent over the life of their current 10-year concessions, according to their concession terms.
In MGM China’s case, the 20-percent potential extra investment pledge is estimated as MOP3 billion, as the company has committed an aggregate of MOP15 billion in non-gaming projects during their new concession term, according to its interim results filed to the Hong Kong bourse in early August.
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