MGM China Holdings has revised the annual cap under its master service agreement with Shun Tak Holdings, raising the 2025 limit from HK$180 million ($23.1 million) to HK$200 million ($25.6 million).
The revision, disclosed in a September 11th filing to the Hong Kong Stock Exchange, reflects growing demand for offsite gaming accommodation and higher expected room purchases.
The increase applies to the Fourth Renewed Master Service Agreement, originally signed between MGM Grand Paradise and Shun Tak. The agreement, which covers services such as hotel room rentals, laundry, and property cleaning, was first renewed in December 2022 and runs through the end of 2025.
According to the filing, payments made by MGM China to Shun Tak reached HK$87.1 million ($11.2 million) in the first half of 2025. Historical payments amounted to HK$70.3 million ($9 million) in 2023 and HK$153.6 million ($19.7 million) in 2024. The company said that with the expected rise in accommodation demand through the remainder of the year, the previous cap would no longer be sufficient.
MGM China noted that the revised cap was set after taking into account historical transaction levels, estimated service demand for the remainder of 2025, and anticipated increases in room procurement.
The company emphasized that the terms of the agreement remain on normal commercial terms and at arm’s length, and that the transactions are in the ordinary course of business. Independent non-executive directors concluded the revised cap to be fair and reasonable, and in the interests of shareholders.
The Stock Exchange of Hong Kong has classified Shun Tak as a connected person to MGM China by virtue of Chairperson and Executive Director Pansy Ho’s shareholdings and management roles in both companies. As such, the transactions constitute continuing connected transactions under Chapter 14A of the Listing Rules. However, because the revised cap remains below the 5 percent threshold, it is subject only to reporting, announcement, and annual review requirements, and is exempt from independent shareholder approval.
MGM China operates MGM Macau and MGM Cotai, while Shun Tak engages in hospitality, property, and transport businesses in Hong Kong and Macau.
