MGM China Holdings Limited, a Macau gaming operator, has renewed its consultancy services agreement with the communications group Occasions.
As per a Friday filing, Occasions is a comprehensive, integrated communications group with offices in Macau, Hong Kong, Beijing, and Shanghai. Pansy Ho, Chairperson of MGM Macau, indirectly holds 50 percent of the entire issued share capital of Occasions. Consequently, Occasions is an associate of Pansy Ho and a connected person of the Company.
The current agreement is set to expire on December 31, 2023. Subject to the annual caps outlined in this announcement, the renewed consultancy services agreement establishes the primary framework under which any member of the Occasions Group may provide services to any member of the MGM Group from January 1, 2024, to December 31, 2026.
MGM China disclosed that historical fees paid to the Occasions Group were HK$32.2 million ($4.1 million), HK$39.4 million ($5.1 million), and HK$80.1 million ($10.3 million) for the two years ending December 31, 2021, and 2022, and the nine months ending September 30, 2023, respectively.
The annual caps for continuing connected transactions contemplated under the renewed agreement are HK$250 million ($32.1 million) for each of the three years ending December 31, 2024, 2025, and 2026.
Within the service agreement, Occasions Group offers a diverse range of services to the MGM Group, including project management, marketing, public relations, and partnership collaboration. The agreement allows for flexibility in service provision as per MGM Group’s needs.
