Melco Assumes Majority Ownership in Melco Crown Entertainment
December 14 2016 - 6:29PM
Seizes Promising Future and Growth
Opportunities in Macau and Asia’s Gaming Markets
Melco International Development Limited (“Melco”
or the “Group”) (HKEx Code:200), a world leader in the leisure and
entertainment sector, today announced that it has signed a
privately negotiated agreement to purchase 198,000,000 ordinary
shares, equivalent to 66,000,000 American depositary shares
(“ADS”s), of Melco Crown Entertainment Limited (Nasdaq:MPEL)
(“MCE”) representing approximately 13.4% of MCE’s current shares
outstanding, from Crown Asia Investments Pty. Ltd. (“CAI”), a
wholly owned subsidiary of Crown Resorts Limited (“Crown”) at a
price of US$18.00 per ADS.
Melco will pay a deposit of US$100,000,000
into an escrow account controlled by Crown promptly following
signing of the purchase agreement, which is refundable only if the
purchase agreement is terminated prior to closing due to Crown’s
default. To support the purchase, Melco obtained a financing
commitment in the amount of US$1,200,000,000 from ICBC (jointly
through the Macau and Hong Kong branches). The closing of the
Melco Acquisition is conditional upon customary closing conditions
and other definitive agreements including the receipt of Macau
regulatory approval. The purchase is expected to be completed in
the first quarter of 2017. Upon closing of the purchase, Melco’s
ownership in MCE will increase from approximately 37.9% to
51.3%.
Mr. Lawrence Ho, Group Chairman and CEO
of Melco, said: “This is a significant milestone for
Melco. In May this year, Melco became MCE’s single largest
shareholder, and today, on the 10th anniversary of MCE’s NASDAQ
listing, Melco is a step closer to assume a bigger and majority
ownership in MCE. The acquisition evidences my positive outlook on
Macau’s long term prospect and also my faith in the strength and
quality of MCE. Taking a majority ownership in MCE will enable both
Melco and MCE to effectively capture growth opportunities in Macau,
Asia and around the world. This is also an important step forward
to realizing Melco’s vision of becoming a global leader in leisure
and entertainment.”
In conjunction with the agreement, Melco and
Crown amended their shareholders’ deed relating to MCE. Mr.
James Packer, a Crown nominee director and current Deputy Chairman
of MCE, will resign as director of MCE effective 15 December
2016. Melco will be entitled under the amended shareholders’
deed to name an additional Melco nominee but has elected not to do
so at this time.
Mr. Ho said: “I would like to
thank James Packer, my personal friend and partner. He has been
supportive to many of my decisions to realize the full potential of
MCE in past years. I am grateful that James continues his support
in this transaction and accepts Melco’s requests to enter into a
transaction that will allow Melco to assume majority ownership in
MCE. I look forward to seeing Melco and Crown working together on
new projects in the future.”
Moelis & Company acted as financial advisors to Melco.
Melco – Entertaining Possibilities.
Achieving Growth.
About Melco International Development
LimitedFounded in 1910 and listed on the Hong Kong Stock
Exchange since 1927, Melco International Development Limited
(“Melco”) (HKEx Code:200) was among the first one hundred companies
established in Hong Kong. Today, under the leadership of its
Chairman and Chief Executive Officer, Mr. Lawrence Ho, Melco has
become a world leader in the leisure and entertainment sector with
operations in China, Philippines and Russia. Its promising
performance and distinctive leadership in the industry are also
well recognized worldwide.
In May 2016, Melco became the single largest
shareholder of Melco Crown Entertainment (NASDAQ ticker symbol
“MPEL”), a leading developer, owner and operator of casino gaming
and entertainment casino resort facilities in Asia, further
bolstering the Group’s financial position through incorporation of
the accounting subsidiary’s full financial contributions. Through
different companies, the Group is also actively pursuing expansion
opportunities in Spain and Cyprus.
As a dynamic enterprise, Melco has garnered
numerous accolades for excellence in corporate governance and
contribution to CSR. Melco has been honoured with the “Corporate
Governance Asia Annual Recognition Award” by Corporate Governance
Asia magazine for the tenth year in 2015. It is also the first
entertainment company to receive the “Hong Kong Corporate
Governance Excellence Awards” by the Chamber of Hong Kong Listed
Companies and the Centre for Corporate Governance and Financial
Policy of the Hong Kong Baptist University.
For more information about Melco, please visit
www.melco-group.com.
Media Enquiries
Melco International Development Limited |
|
|
Maggie Ma |
Tel:
(852) 3151 3767 |
Email: maggiema@melco-group.com |
|
Fax:
(852) 3162 8375 |
|
Strategic Financial Relations Limited |
|
|
Mandy
Go |
Tel:
(852) 2864 4812 |
Email: mandy.go@sprg.com.hk |
Angela Ng |
Tel:
(852) 2864 4855 |
Email: angela.ng@sprg.com.hk |
|
Fax:
(852) 2527 1196 |
|
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