Macau

Melco backs Studio City’s $500m placement

08-07-2020 |  

Melco Resorts & Entertainment said one of its units will take up all of its entitlement to shares in a $500 million private placement from Studio City International Holdings and will also buy up any remaining shares that are unsubscribed.

As a result, Studio City International will receive no less than $450 million and up to about $500 million as a result of the placement offers of Class A ordinary shares, Melco said. 

Studio City, operator of the Hollywood-themed resort of the same name on Cotai, is offering the shares at US$3.89 each to existing shareholders.

According to Melco’s latest annual report, it currently owns 54.1 percent of Studio City through its MCO Cotai Investments unit. The remainder is held by other investors and the public after its American Depositary Shares were listed on the New York Stock Exchange in 2018. 

Analysts have long speculated that eventually Melco will buy out the remaining shares in the unit.

Source: AGBrief

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