The Company and its subsidiaries (“Group”)’s businesses include (i) the provision of gaming services to SJM in two major casinos in its properties, namely Pharaoh’s Palace Casino in The Landmark Macau and Babylon Casino in MFW under the Service Agreement; and (ii) the operation of hotels, entertainment and leisure facilities within its properties.
The redevelopment of MFW (“MFW Redevelopment”) will increase the offerings of MFW and should attract a wider range of customers. The MFW Redevelopment involves the redevelopment of existing facilities as well as the addition of new facilities, such as Harbourview Hotel, Legend Palace Hotel, Legendale Hotel, two new casinos, general entertainment and cultural facility, a canopied open-air shopping, dining and entertainment colonnade, a yacht club at the marina and other attractions.
On 18 May 2012, the Group completed the acquisition of the entire equity interest in MFW International Investment Limited (“MFW Investment”). The MFW Investment is principally engaged in operating MFW.
On 5 July 2013, 934,827,000 new shares of the company, representing 15% of its enlarged issued share capital immediately after the completion of the global offering, were issued at HK$2.35 per share for cash through an initial public offering by way of Hong Kong public offer and international placing. Effective as of that date, the shares of the company have been listed on the Main Board of The Stock Exchange of Hong Kong Limited. The Company raised net proceeds of approximately HK$2.1 billion from the global offering.
In January 2014, the Company completed a top-up placement of 188,000,000 new shares, representing approximately 2.92% of the enlarged issued share capital of the Company upon completion of the top-up placement, to certain independent professional, institutional and other investors at HK$7.25 per share and raised net proceeds of approximately HK$1,350.8 million.
On 8 April 2014, the Company entered into the Facility Agreement with Industrial and Commercial Bank of China (Macau) Limited and the other lenders relating to the facility in the amount of HK$4,221.0 million to be made available to MFW Investment.On 16 April 2014, the Group proposed to adopt the structure established through the entering into the exclusive management and consultancy services agreement, the exclusive undertaking to sell agreement, the transfer of profit and loan agreement, the share and equity pledge agreement and the power of attorney entered into among Hong Hock Development Company Limited, New Legend VIP Club Limited (“New Legend”) and Mr Yip Wing Fat, Frederick, the sole shareholder and sole director of New Legend and the executive vice president, head of casino operations of the Company (“VIE Agreements”), where appropriate, which enables the Group to indirectly participate in the gaming promotion business operations in Macau through New Legend (“VIE Structure”) and have a greater control over the management and marketing of the VIP rooms operated by New Legend in the casinos located in its properties, as well as enhance its market footprint and receive a higher percentage of gross gaming revenue generated by the gaming tables in these VIP rooms. The VIE Structure was approved by the independent shareholders of the Company at an extraordinary general meeting of the Company held on 3 July 2014 and since then, the Group has obtained all required approvals, control over the gaming promotion business of New Legend and the right to consolidate the results of New Legend.