Melco Resorts and Entertainment is to proceed with its previously announced new share repurchase program, growing the control of current chairman and chief executive officer Lawrence Ho, details Inside Asian Gaming.
The developer, owner and operator of gaming and entertainment casino resort facilities throughout Asia, is to proceed with the repurchase of up to $500m Melco Resorts shares over a three year period.
Originally outlining its plans for the new repurchase program earlier in the month (Thursday 8 November), shareholder approval was necessary to proceed.
Full implementation is to see the firm’s majority shareholder Melco International Development’s indirect holding of Melco Resorts’ outstanding share capital, rise from its current approximation of 53.78 per cent to around 57.42 per cent.
This more recent manoeuvres follows the completion of a previous repurchase program, approved in March, that saw the organisation purchase shares worth US$490m over the past seven months.
Explaining its reasons for the new development, Melco stated in a filing that it would, “benefit from the trading of Melco Resorts’ securities under current market conditions,” adding it “reflects the confidence of the company in Melco Resorts’ long-term strategy and growth prospects.
“The new share repurchase program is in addition to Melco Resorts’ earlier share repurchase program announced on 21 March 2018, which has nearly been exhausted.”
Earlier in the month Melco revealed an 11 per cent decrease in net revenues for the third quarter of the year, dropping to $1.22bn from $1.37bn for the comparable period in 2017.
Addressing the firm’s focus moving forward, Ho stressed the importance Japan could play in the coming years, after the progression of its integrated resorts implementation bill: “Japan continues to be a core focus for us. We expect development of the next generation of integrated resorts to soon commence in this incredibly exciting, yet currently underpenetrated, tourism destination.
“With our focus on the Asian premium segment, high quality assets, dedication to world-class entertainment offerings, market-leading social safeguards and compliance culture, and our commitment to being an ideal partner to local governments and communities alike, we believe Melco is in a strong position to help Japan realise the vision for integrated resort development with a unique Japanese touch.”
