Melco Resorts & Entertainment has completed its acquisition of a 75% stake in ICR Cyprus – the operating entity of under construction Cyprus integrated resort City of Dreams Mediterranean – from parent company Melco International Development Limited.
Melco International announced late Wednesday that the transaction had been completed earlier in the day, with Melco Resorts taking 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.
As a result, Melco International’s stake in Melco Resorts now sits at 55.80%.
Melco Resorts had previously announced that the transaction 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.
ICR Cyprus, which is 25% owned by local firm Cyprus Phassouri Ltd (CPZ), has already opened its temporary Cyprus casino facility plus three satellite casinos in Nicosia, Larnaca and Ayia Napa, with one more satellite due to open in Paphos this year.
The €500 million City of Dreams Mediterranean is scheduled for launch by the end of 2021.
