MGM China to inject $594m into Macau unit to re-tender

HONG KONG, Aug 21 (Reuters): Casino operator MGM China Holding said it will inject 4.8 billion patacas ($594 million) into its MGM Grande Paradise unit as it prepares to re-tender for a licence to operate its gaming business in Macau.

Under the terms of a revised gaming law released by Macau's legislature earlier this year, a casino needs a minimum capital requirement of 5.0 billion patacas, and the managing director of the concessionaire must be a Macau permanent resident holding at least 15 per cent of its capital.

MGM China, the Chinese arm of US gambling giant MGM Resorts International, said in a filing on Sunday that if the company is awarded the new concession, co-chairperson Pansy Ho will fill that role.

MGM Grande Paradise will issue 4.07 million Class A shares to the company at an aggregate subscription price of 4.07 billion patacas, MGM China said in the filing, and issue and transfer another 730,000 Class B shares to Ho.