THE M3: MPEL HK IPO; WYNN MACAU DIVIDEND; GALAXY; MACAU BUDGET

The Macau Metro Monitor, November 18, 2011

PROPOSED LISTING ON THE STOCK EXCHANGE OF HONG KONG LIMITED AND CONVERSION OF SHAREHOLDERS' LOANS Melco Crown

  • Taking account of current market sentiment, MPEL does not intend to carry out a global offering in conjunction with the Proposed HK Dual Listing.
  • Currently aiming to complete the Proposed HK Dual Listing by end of 2011
  • The shareholders' loans initially provided in 2006 by wholly-owned subsidiaries of major shareholders, Melco International Development Limited and Crown Limited, will be converted into ordinary shares of the company on or around November 29, 2011.
    • Following the conversion, Melco and Crown will maintain their interests in the company in equal proportions. 
    • Conversion price will be determined as one-third of the VWAP of the company's ADS over the period of the five trading days immediately preceding the date of conversion, as each ADS represents three Shares.
  • As of September 30, 2011, the combined outstanding shareholders' loan balances due to Melco and Crown by the Company are HK$899.8MM (approximately US$115.6MM). 
  • The dilution impact from the conversion of the shareholders' loans on existing shareholders of the Company (other than Melco and Crown), based on closed price of $8.93, is approximately 0.8%.

WYNN MACAU: TO PAY SPECIAL DIVIDEND OF HK$1.20 PER SHARE WSJ

Wynn Macau would pay a special dividend of HK$1.20 per share to those shareholders who hold shares through Dec 7.  The dividend will be paid on Dec 19.  This is the 2nd time Wynn Macau has paid a dividend.  Last November, Wynn Macau declared a special dividend of 76 Hong Kong cents per share, and said it would consider paying recurring dividends with a target yield of 1%-3% per year.

GALAXY LOOKS FOR 20 PERCENT-PLUS GROWTH IN 2012 Macau Business

Galaxy is looking to beat consensus estimates of 15-20% growth in 2012, said CFO Robert Drake.  “Everyone is looking at the VIP market in particular. We haven't seen any signs of slowing. There is plenty of liquidity in the market and visitation remains strong,” Drake commented.

MACAU GOVT UNABLE TO SPEND AS MUCH AS BUDGETED Macau Business

In the first 10 months of 2011, the Macau government’s total public expenditure was MOP31.3 BN (US$3.9 BN).  That is less than 60% of what it budgeted for the overall year, when there is only two more months to go.  A fiscal surplus of MOP 59.53 BN was recorded in the first ten months of 2011, up by 68.3% YoY, due to the increment in public revenue from the direct taxes on gaming.