MGM Macau casino raises $1.4 billion in Hong Kong IPO

http://www.vegasinc.com/news/2011/jun/03/mgm-macau-casino-raises-14-billion-hong-kong-ipo/

A Macau casino joint venture between MGM Resorts International and Pansy Ho, the daughter of gambling tycoon Stanley Ho, has raised about 11.1 billion Hong Kong dollars ($1.4 billion) in net proceeds from an initial public offering on Hong Kong's stock exchange.

MGM China Holdings Ltd.'s IPO of 760 million shares was priced at the top end of its range of 12.36 Hong Kong dollars to 15.34 Hong Kong dollars.

As part of the IPO, MGM China became owner of MGM Grand Paradise SA, the Macau company that owns the MGM Grand Macau resort and casino and the related gaming sub-concession.

Grand Paradise Macau Ltd., an affiliate of Pansy Ho, is giving the underwriters a 30-day option to buy up to an additional 114 million shares to cover any excess demand. Her father Stanley Ho is a modern gambling pioneer in China.

MGM China used the offering's net proceeds to pay back a previously issued acquisition note to Grand Paradise Macau as part of the reorganization of its shareholding structure.

In April, MGM Resorts reached a deal with Pansy Ho that would give it 51 percent ownership and management control of MGM China Holdings once it went public. Pansy Ho would have a 29 percent stake and other shareholders would own a 20 percent stake. It was previously split 50-50.

MGM's casino is one of 34 in Macau, a special administrative region of China and the only place in the country where casino gambling is legal. The company is hoping to capture growing investor interest in Macau gambling companies, which have helped the economy boom since a four-decade casino monopoly was broken up in 2002.

The former Portuguese colony is now the world's top gambling market.

MGM's Macau casino and hotel resort opened in December 2007 and has 1,006 slot machines and 427 gaming tables.

Pansy Ho is co-chair of MGM China with Jim Murren, who is CEO of MGM Resorts. Murren said MGM Resorts will record a "significant gain" in the second quarter because of the IPO's completion and related transactions.

MGM Resorts International stock fell 50 cents, or 3.4 percent, to $14.26 in morning trading Friday.

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Economic index’s rise could signal Las Vegas job growth

Sam Morris

Tourists walk along the Las Vegas Strip on Thursday, April 28, 2011.Economic index’s rise could signal Las Vegas job growthBy Buck Wargo

http://www.vegasinc.com/news/2011/jun/03/economic-indexs-rise-could-signal-las-vegas-job-gr/

Friday 3 June 2011 1:38 p.m.

As fears are stoked about the U.S. economic recovery, a UNLV index released today shows Southern Nevada could be adding jobs by the end of the year.

The Southern Nevada Index of Leading Economic Indicators in May rose 0.52 percent. Most gains were in visitor volume, passenger counts and taxable sales, according to UNLV’s Center for Business and Economic Research.

A rising index is considered a signal for job growth in the coming months.

“If the economies of the Western states improve, spending on travel and tourism could continue contributing to the economic growth in Southern Nevada,” said Bob Potts, the center’s assistant director.

But it’s too soon to put too much stock in the index that rose sharply in March and declined in April. In addition, the national economy that drives Las Vegas tourism is weakening, and some economists fear high gasoline prices and falling home prices nationwide will stall the recovery or may even lead to a double-dip recession.

The U.S. unemployment rate rose to 9.1 percent in May after the nation added only 54,000 jobs.

Nevada’s jobless rate dropped for the fourth straight month to 12.5 percent in April. Las Vegas’ rate was 12.1 percent.

The report said 3,500 jobs were added statewide in April, down from 11,000 added in March.

The UNLV index, which measures economic activity through March, showed convention attendance up 10.3 percent, visitor volume up 5.6 percent, gross gaming revenue up 7.2 percent, airport passengers up 2.2 percent and taxable sales up 9.5 percent.

Commercial construction was also up but residential construction remained weak.