02282.HK announced that on June 23, 2022, the further extension of the contract has been approved and approved by the Macao government and executed by SJM and MGM. Accordingly, the subgrant of MGM Golden Hall Super Gamble, which originally expired on June 26, 2022, will be further extended until December 31, 2022.
After signing the subcontract extension, MGM will have to pay the Macau government 47 million patacas (equivalent to approximately HK $45.63 million) as a premium for the further extension.
The further extension of the contract also requires MGM Golden Hall to submit to the Macau government a bank guarantee of not less than 880 million patacas (equivalent to approximately HK $854.37 million) within three months from the date of signing the further extension of the contract, to ensure the performance of the existing commitment to the labor debt upon the expiration of the further extension contract. The Macao government may increase the above guarantee amount according to the actual number of employees employed by MGM Golden Hall.
On June 23, 2022, the reversion undertaking has been approved and approved by the Macao Government and executed by MGM Golden Palace. Accordingly, the MGM Casino and MGM MACAU Casino shall be returned to the Macao Government free of charge at the end of the extended sublease period on December 31, 2022. The reversion undertaking is made in accordance with the provisions of the Gaming Law and complies with the terms of the subcontract for further extension of the contract.
The core business of the Group is the development and operation of casinos and related facilities in Macau. The Board is of the view that the transfer of the further extension of the contract represents a major development for the Group because when the Macau government considers launching the next round of bids for gaming awards, the contract places MGM in the same position as other grantees and subgrantees. The reversion undertaking is made in accordance with the provisions of the Gaming Law. In the opinion of the Board, the terms of the subgrant of further extension of the contract and the reversion undertaking are fair and reasonable and in the interests of the Company and the shareholders as a whole.