Melco Resorts and Entertainment’s Chairman and CEO Lawrence Ho has given the green light to a new share repurchase program, permitting the purchase of up to US$500 million Melco Resorts Shares over a three-year period from 8 November 2018.
Melco had originally announced plans for the new repurchase program on 8 November but needed shareholder approval in order to proceed. Such approval was never in doubt given that Ho and people or companies directly associated with him control 53.34% of the company.
The repurchase program follows completion of a previous program approved in March that has seen Melco purchase shares worth US$490 million over the past seven months.
Explaining its reasons for the new program, Melco said in a Thursday filing that it would, “benefit from the trading of Melco Resorts’ securities under current market conditions,” adding it “reflects the confidence of the company in Melco Resorts’ long-term strategy and growth prospects.
“The new share repurchase program is in addition to Melco Resorts’ earlier share repurchase program announced on 21 March 2018, which has nearly been exhausted.”
Full implementation of the program would see majority shareholder Melco International Development’s indirect holding of Melco Resorts’ outstanding share capital increase from approximately 53.78% to around 57.42% assuming current conditions remain steady.
Ho has been actively looking to gain greater control of Melco Resorts as well as reducing the complexity surrounding some of its interests in recent months, most notably via its Studio City IPO and tender offer for shares in Melco Resorts and Entertainment (Philippines) Corp.
