Macau concessionaire Melco Resorts & Entertainment said Monday it is seeking shareholder approval – and has already done so – to fully realize its US$500 million share repurchase program in a move that could see the company increase its holding of outstanding share capital from 53.85% to 71.30%.
The share repurchase program was first announced in June 2024 with Melco revealing that it has as of today repurchased an aggregate of US$174 million in shares under the program representing 97.3 million shares.
Noting that full implementation of the share repurchase program would comprise a major transaction for the company under NASDAQ Listing Rules, Melco said it now wishes to obtain advance shareholder approval for such implementation to ensure compliance with the requirements of the Listing Rules without having to seek further approvals.
However, it added that the Company has already received written shareholders’ approval from a “closely allied group of shareholders which collectively holds more than 50% of the issued shares of the company” and therefore no shareholders’ meeting will be convened to approve the implementation in full of the share repurchase program.
Should Melco fully implement the program and cancel the repurchased Melco Resorts shares or hold them as treasury shares for future re-issuance, the company’s indirect holding of Melco Resorts’ outstanding share capital would increase from 53.85% presently to 71.30%, assuming the repurchases are made at their current price of US$4.80.
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