MJC to comply with social capital raising schedule

The Macau Horse Racing Company has agreed to proceed with a gradual increase of its social capital, with the aim of reaching MOP1.5 billion (US$186.1 million) by 2023, under a new contract published in the Official Gazette on Wednesday.

In February, the MSAR government approved the license extension of the Macau Horse Racing Company until 31 August 2042.

The renewal will see MJC continue to run horse racing in the city for another 24 years.

However, the new concession introduced new rules, including shortening the grace period allowed for the company to pay taxes, and also stipulating the requirement for the company to invest around MOP1.5 billion in the construction of non-gaming elements and facilities.

According to a report from Macau Business, the new contract stipulates that the company will be required to meet a capital raising schedule, or risk losing its license.

Under the new rules, the Macau Horse Racing Company will be required to reach a minimum registered capital of MOP 600 million by December 31, 2018, MOP 1 billion by June 30, 2020 and MOP1.5 million by 2023.

Should the company fail to comply with the schedule, the MSAR is entitled to suspend the operations of the Jockey Club, or terminate its concession altogether.

The company will also still be required to pay back the taxes it owes, a total of MOP 150 million - to be repaid over three years.

The debt is to be paid in monthly instalments, with an annual payment of a minimum of MO P50 million in the first two years, with the remaining amount to be settled in the third year.

Non-payment of the annual payment or debt may also lead to suspension or termination of its license.

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