Macau (MNA) – Melco International Development Limited has increased by 4.26 per cent its majority stake in the joint venture investment project in Cyprus for a total consideration of 160 million Euros (HK$1.46 billion/US$188.62 million), to be paid in instalments.
According to the filing on Monday late evening, Melco is to keep 75 per cent of the equity in the project holding company – ICR Holdings, a subsidiary of the company – from the current 70.74 per cent while its local partner, Cyprus Phassouri (Zakaki) Limited (CPZ), will keep 25 per cent in ICR from the current 29.26 per cent.
The subsidiaries of ICR Holdings are currently Integrated Casino Resorts Cyprus Limited (‘ICRC’) and ICR Cyprus Resort Development Co. Limited (‘ICRD ‘).
The company headed by casino operator Lawrence Ho Yau Lung announced it had entered into definitive joint venture investment agreements with CPZ for the development and operation of the integrated casino resort in Limassol, Cyprus and up to four satellite casino properties in Cyprus.
Pursuant to the agreement, CPZ has agreed to contribute the real estate on which the integrated casino resort will be developed.
The company noted further that the shareholders’ agreement contemplates that Melco Resorts & Entertainment Limited or one of its subsidiaries will be responsible for the management of the project and to provide other services to the ICR Cyprus Resort Development Co. Limited pursuant to a number of services agreements to be entered into. Services described in the filing include design, construction and development process, pre-opening and related services, corporate management services, as well as the provision of property and proprietary systems.
CPZ is a member of CNS Group, the business portfolio of which includes real estate, telecommunications, dairy, large-scale farming and export and mining in Cyprus.
Melco has first entered into an agreement to assume a majority stake in the Cyprus project, at 70.74 per cent stake, by purchasing a 35.37 per cent interest owned by Hard Rock International Inc. in the casino project in September.
The joint bid made by Melco International, Hard Rock and CPZ was granted a gaming licence on June 26 by the Cyprus Government to develop, operate and maintain an integrated casino resort in the country’s southern city of Limassol and up to four satellite casino premises in Cyprus for a 30 year period, plus the rights to 15-year exclusivity clause.
