MGM China Holdings has announced the extension of long-running branding and non-compete agreements with its Co-Chairperson and Executive Director Pansy Ho, and parent company MGM Resorts International, that will see their expiry dates align with that of the company’s sub-concession contract.
The new agreements follow confirmation by the Macau government in March that it had agreed to extend the gaming sub-concession held by MGM China’s subsidiary, MGM Grand Paradise, for two years until 26 June 2022. SJM Holdings was granted a similar extension, bringing the concession contracts of all six Macau concessionaires into line ahead of an upcoming public tender for the granting of new gaming licenses.
In a Monday filing, MGM China said it has now entered into a First Renewed Branding Agreement with MGM Grand Paradise, MGM Branding, MGM Resorts International, MGM Resorts International Holdings and Ho’s New Corporate Enterprises Ltd allowing it the use of certain trademarks owned by MGM Resorts and its subsidiaries for the remainder of its sub-concession contract. MGM China, which owns and operates Macau integrated resorts MGM Macau and MGM Cotai, will pay a monthly license fee equal to 1.75% of revenue for the privilege.
The company has also entered into a Renewed Deed of Non-Compete Undertakings with Ho and MGM Resorts International, extending the original deed’s 31 March 2020 expiry date to 26 June 2022.
The non-compete agreement stipulates that neither Ho and her associates nor MGM Resorts and its associates will, directly or indirectly, engage or invest in any other casino gaming business in Macau, China, Hong Kong or Taiwan. It also restricts them from holding any shares or interest in another casino gaming business outside of certain specified exceptions.
Those exceptions include Ho’s position as Chairman, CEO and Director of Shun Tak Holdings and her interests in STDM, which owns 54% of SJM. The 57-year-old, who holds a direct 22.5% stake in MGM China, made a move for STDM in January when she formed a five-way alliance comprising four companies controlled by her and one other major shareholder. The alliance’s combined stake in STDM amounted to 53% and saw it seize a majority presence on the company’s board just a few months later.
