MPEL confirms no global offer to investors during planned HK-NASDAQ dual listing
Monday, 21 November 2011
NEW YORK, Nov 18, 2011 (GlobeNewswire via COMTEX) --
Melco Crown Entertainment Limited (the "Company") (Nasdaq:MPEL), a developer, owner and, through its subsidiary, an operator of casino gaming and entertainment resort facilities focused on the Macau market, announces that its application to the Stock Exchange of Hong Kong Limited (the "SEHK") for a proposed dual listing of its shares on the Main Board of the SEHK (the "Proposed HK Dual Listing") was considered by the Listing Committee of the SEHK on November 17, 2011, on the basis that the Proposed HK Dual Listing will proceed by way of introduction. Taking account of current market sentiment, the Company does not intend to carry out a global offering in conjunction with the Proposed HK Dual Listing. The Company will continue to evaluate future fund raising plans, carefully considering business development needs and shareholders' interests as a whole.The Company is currently aiming to complete the Proposed HK Dual Listing by year end. The Company wishes to highlight that as the proposed HK Dual Listing is subject to, among others, the final approval of the SEHK and other relevant authorities, it may not occur in the absence of such approvals.
The Company also wishes to announce that the shareholders' loans initially provided in 2006 by wholly-owned subsidiaries of our major shareholders, Melco International Development Limited ("Melco") and Crown Limited ("Crown"), will be converted into ordinary shares of the Company (the "Shares") on or around November 29, 2011. Following the conversion, Melco and Crown will maintain their interests in the Company in equal proportions. The conversion price will be determined as one-third of the volume weighted average price of the Company's American Depositary Shares ("ADSs") as quoted on the NASDAQ Global Select Market, over the period of the five business days (being NASDAQ trading days) immediately preceding the date of conversion, as each ADS represents three Shares.
Conversion of the shareholders' loans has been previously contemplated and in view of the Proposed HK Dual Listing, the conversion is deemed appropriate at this time to demonstrate the Company's ability to carry on its business independently of controlling shareholders, as required under the Listing Rules of the SEHK. The conversion of these loans into equity is further evidence of our controlling shareholders' continuing commitment to the Company, as well as their confidence in Macau's long term prospects.
As of September 30, 2011, the combined outstanding shareholders' loan balances due to Melco and Crown by the Company are HK$899.8 million (approximately US$115.6 million). As of November 17, 2011, the closing price for the Company's ADSs was US$8.93 per ADS. The dilution impact from the conversion of the shareholders' loans on existing shareholders of the Company (other than Melco and Crown), based on this price, is approximately 0.8%.