MGM agrees Macau casino deal with Pansy Ho

MGM agrees Macau casino deal with Pansy Ho

MGM Resorts International has inked a deal with Pansy Ho to take a controlling stake it Macau casino joint venture.

The two companies have also agreed to an Initial Public Offering on the Hong Kong Stock Exchange.

Under the deal, MGM will get a 51 percent stake in the IPO, Pansy Ho will receive 29 percent of the shares and the remainder will be sold to investors.

The two partners currently each hold 50 percent of the venture.

MGM owns some of the biggest casinos in the US, while Pansy Ho is the daughter of Macau mogul Stanley Ho, the largest casino operator in Macau.

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No date has yet been finalised for the launch of the IPO.

Gaming revenues in Macau are soaring, with last year it reporting at 57 percent rise, with total revenue of $23.5bn (£15.2bn), making it the biggest gambling market in the world.

Only six companies have licenses to operate casinos in Macau.

Analysts say they are expecting a big impact on MGM’s earnings once the deal has been finalised.