Melco Resorts & Entertainment Limited has entered into an agreement to acquire parent company Melco International Development Limited’s entire 75% stake in ICR Cyprus – the operating entity of under construction Cyprus integrated resort City of Dreams Mediterranean.
The transaction will see Melco Resorts take control of the Cyprus development in exchange for 55.5 million ordinary shares, equivalent to 4.0% of its outstanding share capital and valued at US$375 million.
In an overnight announcement, Melco Resorts said completion of the deal is dependent upon approval by Cyprus regulatory authorities and the execution of a new shareholders’ agreement. The proposed agreement would contain “certain commercial and financial arrangements” including the provision by Melco of corporate-level management services to the ICR Group for a fixed amount of €2 million per annum and the right to receive an allotment of preference shares in the gaming license-holding subsidiary of ICR Cyprus.
Pending approval, the transaction is expected to be closed by 20 September 2019.
ICR Cyprus, which is 25% owned by local firm Cyprus Phassouri Ltd (CPZ), has already opened its temporary Cyprus casino facility plus two satellite casinos in Nicosia and Larnaca, with two more satellites due to open in Paphos and Ayia Napa this year.
The €500 million City of Dreams Mediterranean is scheduled for launch by the end of 2021.
