Macau concessionaire Melco Resorts & Entertainment says it has granted 2,052,206 American Depository Shares (ADS), equivalent to 6,156,618 Melco shares, to its Chairman and CEO, Lawrence Ho.
The shares, worth US$15.2 million based on Melco’s NASDAQ closing price of US$7.40 per share on 6 April 2022, are for the purpose of “incentivizing and motivating [Ho] to strive for the future development of the Melco Resorts Group and its businesses.”
The shares have been granted despite Melco reporting a loss after tax of US$956.5 million in 2021, having previously reported a US$1.45 billion loss in 2020, impacted by the COVID-19 pandemic.
In an SEC filing, Melco said the restricted shares granted to its Chairman and CEO represent approximately 0.42% of the company’s issued share capital. They will be vested to Ho in four tranches, with 269,462 ADSs, worth US$2.0 million, vesting on 6 April 2022, 666,820 ADSs worth US$4.9 million on 6 April 2023, another 666,820 ADSs on 6 April 2024 and 449,104 ADSs worth US$3.3 million on 6 April 2025.
The granting of shares comes as Melco looks to extend its Macau gaming concession for a further six months, having confirmed last week that it will be required to pay an “extension premium” of MOP$47 million (US$5.8 million) for the privilege.
Melco operates City of Dreams Macau and Altira Macau, and is controlling shareholder of Studio City operator Studio City International Holdings Limited. It also operates City of Dreams Manila and is developing Europe’s largest integrated resort, City of Dreams Mediterranean in Cyprus, which is due to open in mid-2022.
