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The Macau Metro Monitor, June 16, 2011

MELCO CROWN GAINS CONTROL OF MACAU PROJECT Melco Crown Entertainment, WSJ, Channel News Asia

MPEL plans to pay the affiliate of eSun US$260 million for a 60% interest in the Cyber One Group, the developer of  Macau Studio City (MSC), and will further pay New Cotai--an arm of U.S. investment firms Oaktree Capital Management L.P. and Silver Point Capital L.P which owns 40% of MSC--US$100 million in cash in three installments over two years.  According to a person familiar with the situation, under a previous deal, MPEL was to receive 10% of mass GGR and 5% of VIP GGR. 

MPEL CEO Lawrence Ho said, "We believe Macau Studio City’s existing land grant and previously completed site work will allow us to significantly expedite its construction timetable.”

ESun said a default notice from the Macau government regarding the lack of progress on the project was among its reasons for wishing to settle a multi-year dispute among the involved parties.  Meanwhile, CapitaLand has sold its 20% interest in MSC to eSun for HK$658.7 million (S$104.5 million) to help resolve any disagreements.  According to the terms of the settlement, the eSun-led joint venture and New Cotai will settle legal proceedings initiated against each other in Hong Kong without admitting liability, eSun said.


Singapore Tourism Board's director of integrated resorts/business tourism development, Carrie Kwik said, "Marina Bay Sands Pte. Ltd., the successful bidder of the Marina IR, is not allowed to sell, transfer or dispose of its estate interest in Marina Bay Sands within the exclusivity period of 10 years. The approval of the Singapore government must be sought if the IR operator were to consider any sale or subdivision of the IR after that period."

A Marina Bay Sands spokesman said Leven's statements were "inadvertently made without reference to certain restrictions set out in the development agreement between Marina Bay Sands Pte. Ltd. and the Singapore Tourism Board."