GenM may have to increase proposed level of investment in Macau bid — report

GenM may have to increase proposed level of investment in Macau bid — report
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KUALA LUMPUR (Nov 25): Genting Malaysia Bhd (GenM), along with six other companies bidding for a new 10-year gaming concession in Macau from 2023, may have to increase their proposed level of investment.

Citing a report from TDM Portuguese radio, gaming industry magazine Inside Asian Gaming (IAG) on Wednesday (Nov 23) said the Macau government had sought an increase in investments as the bidding parties completed negotiations with the government and submitted their final proposals this week.

IAG reported that it is also said that the preliminary results of the tender committee will be announced shortly, possibly as early as this week.

Central to TDM’s report is that the government has asked the contenders to increase their proposed amount of investment.

IAG said the media outlet revealed last month that the six companies who ultimately win a new gaming concession had agreed to invest a combined US$12.5 billion (RM55.72 billion) over the duration of the 10-year concession period, with Galaxy Entertainment Group and Sands China to each invest more than US$2.5 billion, and the remaining four to invest closer to US$1.88 billion.

In Tuesday’s final meeting, TDM claimed, the government requested a further increase in the amount of investment.

According to the report, Galaxy Entertainment Group and Sands China could be expected to invest more than MOP$50 billion (RM27.74 billion), while the other four concessionaires would also invest more than their previously agreed amounts.

The report added that non-gaming investment would include a commitment by the tenderers to build an art museum, develop an annual convention programme, launch major concerts, and provide international-quality entertainment and sea tours.

Under Macau’s new gaming law, tenderers who are granted a provisional concession will be required to submit information to the Gaming Inspection and Coordination Bureau around its minimum capital requirement of US$625 million.

The government will then draw up the final award contracts and each awarded company will have five days to express its views.

The government may sign the concession contracts with the awarded companies before Dec 20, with the new concessions to take effect on Jan 1, 2023.

At 9.47am on Friday, GenM had fallen 1.84% or five sen to RM2.67 a share, with 7.57 million shares done.

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