Thu, Jun 27, 2:11pm by Staff Writer
Melco International Development is selling its entire stake in the City of Dreams Mediterranean project being built in Cyprus.
This doesn’t mean the company won’t maintain an interest in the integrated resort though. The stake is only going down the hall to one of its own companies, Melco Resorts & Entertainment.
Calvin Ayre is reporting that Melco Resorts announced Monday that it has signed an agreement with its parent company to purchase the complete lot of ordinary shares in CODM held by the latter.
This will give it a 75 per cent equity interest in ICR Cyprus Holdings, the company that is behind the CODM project in Limassol, as well as other casinos around the country.
The deal is reportedly worth $375 million.
It will see Melco Resorts acquire the equity shares in exchange for 55.5 million ordinary shares that are the equivalent of around 18.5 million US depositary shares.
The exchange still has to be approved by regulators in Cyprus and must meet standard closing conditions.
It will also require the drafting of a new shareholders agreement on the part of Melco Resorts that would obligate the company to “provide certain corporate-level management services to the ICR Group for a fixed amount of $2.27 million per annum.”
ICR has three casinos in Cyprus – two satellite casinos in Nicosia and Larnaca and one temporary casino in Limassol.
The latter was established to help drum up local gambling interest while the permanent casino is being built.
It opened last June, while the other two started accepting patrons last December.
Another satellite casino is going to open in Paphos this summer and a fourth in Ayia Napa before the end of the year. All of the venues are owned by ICR.
CODM is expected to be complete sometime in 2021 after having its previous 2020 launch date pushed back.
Melco Resorts & Entertainment Acquires 75% Equity Interest in Cyprus Casino Resort – https://t.co/AeRom8JGsn and operator of casino resorts Melco Resorts & Entertainment today announced that it has entered into an agreement with its parent company Melco International Developme… pic.twitter.com/zRX0TUfl3Y
— Betting52 (@Betting521) June 25, 2019
When it’s ready, it will boast a casino offering more than 1000 slot machines and 100 gaming tables, a hotel with 500 rooms and suites, a meetings space, outdoor amphitheater, multiple restaurants and more.
It will reportedly be the largest IR in all of Europe and will be the first venue for Melco outside Asia.
A dealer at a Melco Resorts casino in Cyprus has been embroiled in an alleged cheating scandal, Calvin Ayre reports.
The dealer is accused of assisting a player to win at roulette on 18 different occasions over a one-month period.
The 44-year-old dealer, whose name has not been released, had been aiding a 53-year-old man win on the roulette table.
Staff at the Cyprus casino found that he was acting suspiciously around the security cameras on the property.
The man was arrested immediately and has been in jail for the past four days.
The casino issued a statement saying they “won’t tolerate such behaviour.”
The dealer is currently facing fraud charges, which could be expanded as the investigation continues.
Melco Resorts opened their casino in Cyprus in June as part of the development of four separate casinos across the Mediterranean.
$621.25 million had been spent on the City of Mediterranean resort and casino facility that is expected to be complete in 2021.
A temporary structure is in place until it can be completed.
The Larnaca project, known as C2, is the third of four casino projects to be spread across the region by Melco.
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