Announcing the price of its follow-on public offering yesterday, Co-Chairman and CEO of Melco Crown Entertainment Lawrence Ho commented that last month year on year growth of the Macau gaming revenue had re-emerged, following soon after the successful opening of the company’s City of Dreams in June. The equity placement will raise US$220 million and reduce Crown’s ownership interest from 36.4% to 33.5% if an over-allotment option is exercised.

Ho said, “We are confident that a period of growth at sustainable levels is ahead of us and we continue to remain absolutely focused on the opportunities that this will present to our Company. The placement funds raised will better position us to be able to pursue future development opportunities while at the same time maintaining our rigorous approach to balance sheet prudence."

Las Vegas Sands’ Chairman and CEO Sheldon Adelson has issued a statement saying that restrictions on its US$3.3 billion Macau loan have been eased, allowing the company to pursue a potential listing in Asia of a minority interest of its Macau operations. In exchange for higher interest rates, lenders granted Las Vegas Sands six quarters of relief from some covenants and will allow the company to issue as much as $1.5 billion in senior secured and unsecured notes in Macau ‘subject to certain limitations,’ the Las Vegas-based company said.

Malaysia-based RGB Ltd, a wholly owned subsidiary of Dreamgate Corporation Berhad, decided that 2009 was the year to expand into Macau. The gaming equipment supplier set up shop in Malaysia in the late ‘80s and the Philippines in the mid ‘90s. Group Executive Director of RGB, Steven Lim Tow Boon, says that the time to enter the Macau market is now because slot machine revenue is growing steadily year by year.

The L’Arc Macau casino resort, operated by RGB Macau, is to open this autumn. Yesterday Bally Technologies announced that an array of their products, including Bally’s SDS slot-accounting and player-tracking system; 420 iVIEW player-interface displays; the Company’s CMP Casino Management System with a new junket module fully adapted and configurable to Asia’s requirements; and the award-winning TableView Real-Time Table Rating and Player-Tracking system, have been purchased by RGB Macau.

Wynn Resorts and Las Vegas Sands are both considering a Hong Kong IPO although as yet there are no firm details. Analysts are divided in their opinions on possible rewards for potential investors as current prospects are not particularly good. However, Asia is seen as likely to produce relatively stronger gaming industry growth over the next ten years. July gaming revenue rose 3% in Macau but so far the recovery is only tentative. (E-08.14.09)

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