Melco Resorts & Entertainment Limited (Nasdaq: MLCO)
(“Melco” or the “Company”), a developer, owner and operator of
casino gaming and entertainment casino resort facilities in Asia
and Europe, today announces that due to the impact of the
coronavirus epidemic, including the severe drop in tourism in Asia
to Integrated Resort (IR) facilities in the region, and the recent
decision by the Macau SAR government to close all casinos in Macau,
Melco has taken the decision to reassess all non-core investments
to be made in 2020.
This decision reflects Melco’s commitment
towards its employees, customers, business partners and other
stakeholders and observance of the highest degree of responsibility
until such time as the global health emergency and the related
travel restrictions that affect a significant part of its customer
base are lifted.
Melco considers its core operations to be those
businesses where it is the managing and majority shareholder. This
includes operations in Macau, the Philippines, and Cyprus and its
efforts to obtain a license to operate a Melco-owned (IR) in
Japan.
Melco intends to continue its operations in
these jurisdictions and carry out key investments currently
earmarked for Macau, Manila, Cyprus, and Japan, including the
construction of Studio City phase 2 and City of Dreams
Mediterranean. Management attention will remain focused on these
critical areas of Melco’s business until such time as operations
and business throughout Asia have returned to normal.
As a result of this decision, Melco will not
pursue its planned investment in Australia for the second tranche
of shares in Crown Resorts Limited (“Crown”). While Melco believes
Crown has world-class assets that are complementary to its global
business, it is Melco’s belief that, at this time, its capital
needs to be deployed on its core assets.
CPH Crown Holdings Pty Limited and Melco have
agreed to terminate the obligation to purchase the second tranche
of Crown shares under the purchase agreement announced by the
Company on May 30, 2019 and amended on August 28, 2019. As a result
of the termination, while Melco currently holds 67,675,000 shares
of Crown, it will no longer acquire the remaining 67,675,000 shares
of Crown. Melco does not currently intend to increase its existing
shareholding in Crown from its current position. Melco also does
not intend to seek representation on Crown’s board.
Safe Harbor StatementThis press
release contains forward-looking statements. These statements are
made under the “safe harbor” provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Melco Resorts &
Entertainment Limited (the “Company”) may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the “SEC”), in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about the Company’s beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties, and a number
of factors could cause actual results to differ materially from
those contained in any forward-looking statement. These factors
include, but are not limited to, (i) growth of the gaming
market and visitations in Macau, the Philippines and the Republic
of Cyprus, (ii) capital and credit market volatility,
(iii) local and global economic conditions, (iv) our
anticipated growth strategies, (v) gaming authority and other
governmental approvals and regulations, and (vi) our future
business development, results of operations and financial
condition. In some cases, forward-looking statements can be
identified by words or phrases such as “may”, “will”, “expect”,
“anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”,
“believe”, “potential”, “continue”, “is/are likely to” or other
similar expressions. Further information regarding these and other
risks, uncertainties or factors is included in the Company’s
filings with the SEC. All information provided in this press
release is as of the date of this press release, and the Company
undertakes no duty to update such information, except as required
under applicable law.
About Melco Resorts &
Entertainment LimitedThe Company, with its American
depositary shares listed on the NASDAQ Global Select Market
(NASDAQ: MLCO), is a developer, owner and operator of casino gaming
and entertainment casino resort facilities in Asia and Europe. The
Company currently operates Altira Macau (www.altiramacau.com), a
casino hotel located at Taipa, Macau and City of Dreams
(www.cityofdreamsmacau.com), an integrated urban casino resort
located in Cotai, Macau. Its business also includes the Mocha Clubs
(www.mochaclubs.com), which comprise the
largest non-casino based operations of electronic gaming
machines in Macau. The Company also majority owns and operates
Studio City (www.studiocity-macau.com), a cinematically-themed
integrated entertainment, retail and gaming resort in Cotai, Macau.
In the Philippines, a Philippine subsidiary of the Company
currently operates and manages City of Dreams Manila
(www.cityofdreamsmanila.com), a casino, hotel, retail and
entertainment integrated resort in the Entertainment City complex
in Manila. In Europe, the Company is currently developing City of
Dreams Mediterranean (www.cityofdreamsmed.com.cy) in the Republic
of Cyprus, which is scheduled to open in 2021 and expected to be
the largest and premier integrated destination resort in Europe.
The Company is currently operating a temporary casino, the first
casino in the Republic of Cyprus, and three satellite casinos with
a fourth satellite casino scheduled to open in the coming months
(“Cyprus Casinos”). Upon the opening of City of Dreams
Mediterranean, the Company will also continue to operate the four
satellite casinos while operation of the temporary casino will
cease. For more information about the Company, please
visit www.melco-resorts.com.
The Company is strongly supported by its single
largest shareholder, Melco International Development Limited, a
company listed on the Main Board of The Stock Exchange of Hong Kong
Limited and is substantially owned and led by Mr. Lawrence Ho,
who is the Chairman, Executive Director and Chief Executive Officer
of the Company.
For investment community, please
contact:Richard HuangDirector, Investor RelationsTel: +852
2598 3619Email: richardlshuang@melco-resorts.com
For media enquiries, please
contact:Chimmy LeungExecutive Director, Corporate
CommunicationsTel: +852 3151
3765Email: chimmyleung@melco-resorts.com
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