Melco Resorts & Entertainment Limited says it has entered into a share repurchase agreement with Melco Leisure and Entertainment Group Limited under which it will repurchase 40,373,076 of the company’s ordinary shares for a total price of US$169.8 million.
Melco Leisure, a wholly-owned subsidiary of the group’s ultimate parent, Melco International Development Ltd, currently holds a 53.1% stake in Melco Resorts but will see that holding fall to 51.7% once the shares are repurchased and cancelled.
The privately-negotiated agreement will also see a US$250 million loan facility granted by Melco Resorts to its parent, Melco International Development, canceled. Melco said that the parent already made a US$200 million repayment in January.
Melco’s previously announced US$500 million share repurchase program remains in effect, of which approximately US$412 million is still available for future repurchases under the program, the company said in a statement.
Melco did not outline the reasons for entering into this particular agreement, but confirmed it “will continue to be a subsidiary of Melco International Development and the financial results of the company will continue to be consolidated in the financial statements of Melco International Development.”
Melco recently reported a net loss attributable to the company of US$251.9 million in 4Q22 – widened from both the US$159.9 million loss in 4Q21 and the US$243.5 million loss in 3Q22.
RelatedPosts
