MGM China Holdings Limited has announced the voluntary cancellation of a USD750 million unutilized commitment under a loan agreement with MGM Resorts International (MRI), the controlling shareholder of the company. This cancellation comes after the company's revenue recorded a substantial increase in 2023, driven by a significant recovery in the markets it operates in following the easing of COVID-19 travel restrictions to Macau.
The Facility Agreement, which was intended to meet the company's future working capital and funding needs, is now terminated, and no party shall be liable to the other, except for the obligation of payment of the commitment fee pursuant to the relevant terms under the Facility Agreement, which will survive the termination.
As of the date of the announcement, MRI beneficially owns approximately 56% of the issued share capital of the company. The cancellation of the Facility Agreement is considered fair, reasonable, and in the interests of the company and its shareholders as a whole. The transaction was exempted from shareholders' approval, annual review, and all disclosure requirements pursuant to Rule 14A.90 of the Listing Rules.
The board of directors includes both executive and non-executive directors, with MRI being a connected person of the company.
As a result of these announcements, the company's shares have moved 0.4% on the market, and are now trading at a price of $44.65. For more information, read the company's full 8-K submission here.
