As it is reported Melco International Development Ltd. it would be increasing its stake in the casino that’s currently being developed in Cyprus.
Melco currently owns a 70% stake in the project and will be increasing it to 75%. The increase in stakeholder ownership will occur via a share subscription agreement with Cyprus Phasouri (Zakaki) Ltd, a conglomerate based in Cyprus.
According to the shareholder’s agreement, a Melco Resorts subsidiary or Melco Resorts and Entertainment Ltd. will be responsible for managing the project and offering various additional services to the firm developing the project. The management services mentioned in the filing refer to aspects such as design, construction, development, pre-opening, corporate management, and access to proprietary systems and intellectual property.
The Cyprus project is being labeled as a unique venture by Melco. The casino giant expects it to be a great business opportunity that is in line with Melco’s larger goal of becoming a leading international gaming and entertainment operator. Melco also stated that the Cyprus Phasouri partnership was of great value to the project and its development.
This isn’t the first time Melco has boosted its stake in the project. It had already done so in September by including its purchase of Hard Rock International. Earlier, Melco only owned a 35.37% stake. This was when it formed the consortium to bid for the license. However, by acquiring a stake in Hard Rock and including it in the scheme, it managed to raise its stake to 70.74%.
The license for the casino, granted by the government in Cyprus, is said to be valid for 30 years.