GGRAsia – Wynn Macau Ltd to inject US$596mln into Macau unit

Wynn Macau Ltd to inject US$596mln into Macau unit

Nov 28, 2022 Newsdesk Latest News, Macau, Top of the deck

Hong Kong-listed Wynn Macau Ltd says it will inject nearly MOP4.80 billion (US$596.4 million) into Wynn Resorts (Macau) SA. That is in order to comply with Macau’s revised gaming law and the threshold set for the new generation of Macau gaming concessions, said the firm in a Sunday filing.

Wynn Resorts (Macau) is the Macau-registered subsidiary that currently holds a Macau gaming licence. The local unit has also been awarded a new, 10-year concession, as part of the city’s public tender to award new casino rights.

The Wynn group runs the Wynn Macau gaming resort on the city’s peninsula, and Wynn Palace (pictured), in the Cotai district. The ultimate parent is U.S.-based casino operator Wynn Resorts Ltd.

According to Macau’s gaming law amendment, the minimum share capital requirement for any local casino concessionaire was increased to MOP5.0 billion, from the previous MOP200-million threshold. Other casino firms in the Macau market, such as SJM Holdings Ltd and MGM China Holdings Ltd, had already announced similar exercises, aimed at fulfilling the concession regulations.

In Sunday’s filing, Wynn Macau Ltd said “in order to enter into a new gaming concession contract” with the Macau government, Wynn Resorts (Macau) “will conduct a capital restructuring” so that the latter’s registered capital is increased from MOP200.1 million to MOP5.0 billion.

As part of the restructuring of the local unit, Linda Chen’s voting rights through her Class A nominative shares will be increased to 15 percent, from the current 10 percent. Ms Chen is vice chairman and an executive director of Wynn Macau Ltd; she is also managing director of Wynn Resorts (Macau).

Macau’s amended gaming law requires that at least “15 percent” of the gaming concession entity’s share capital has to be held by a “managing director” who is a Macau permanent resident.

Wynn Macau Ltd said it would “also pay for the share capital of the new Class A nominative shares to be subscribed by Ms Linda Chen”. But the firm added that Ms Chen “does not benefit directly or indirectly” from the exercise, “as her shareholding in Wynn Resorts (Macau) is solely to satisfy the requirements of the Macau gaming law”, in order for the company to “maintain its principal business operations”.

Ms Chen will take over as Wynn Macau Ltd president – in addition to her current role of vice chairman – with effect from March 1, 2023, according to information disclosed previously by the company.