Melco takes the Crown with 60% Stake in Macau Studio City Developer
July 23rd, 2011 | by Jaxon Hewlett |Shares of Melco Crown Entertainment Ltd. (ADR) (NASDAQ: MPEL) slipped less than 1% in late trading following a brief morning spike on news of the casino operators acquisition of a 60% stake in the developer of the Macau Studio City project.
Melco Crown acquired the majority interests in Cyber One Group, which is developing the large scale integrated gaming, retail and entertainment resort, Macau Studio City, in Macau. As per the terms of the agreement, Melco Crown will acquire a 60% interest in Cyber One from an affiliate of eSun Holding Limited for $260 million.
Lawrence Ho, co-chairman and CEO of Melco Crown, is bullish on the Macau market. Ho said that the company remains bullish on Macau’s prospects and believes high quality new supply such as Macau Studio City will continue to drive incremental demand and broaden the appeal of the market. Commenting on the acquisition, Ho said that the proposed acquisition of a majority stake in the Macau Studio City project provides a unique opportunity for the company to meaningfully increase its footprint in Macau and generate incremental value for shareholders.
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