Melco PBL Having Problems (Update 4)

Written on September 28, 2006 by admin

Updated September 28 - As reported in The South China Morning Post, Melco and PBL have not given up their quest for a listing on the Nasdaq. Melco is planning to seek approval again from the Hong Kong authorities in the next few weeks. If approved, the listing on the Nasdaq will not be until early 2007.
And as we mentioned earlier, Melco stock plummeted yesterday as the Hong Kong exchange blocked the move for a listing due to Melco’s being undercapitalized for the listing. This means that they may have to find other means of financing the ‘City of Dreams’ project.

JAMES Packer’s dream of building a $3 billion casino business in the Asian gambling mecca of Macau suffered a major setback yesterday when the Hong Kong Stock Exchange blocked moves for a US listing designed to help finance the project.

Updated September 12 - News just came through that PBL has received its approval from the Macau Government. See full story here PBL Got License

Last Friday Melco shares were suspended from trading on the Hang Seng in Hong Kong. Today as reported PBL Macau casino decision we are having news that the PBL license supposed to be awarded and approved this week by Macau licensing authorities.

This is an interesting development as Melco now may well be undercapitalized for the planned upcoming float.

So what is next for PBL?

But the deal, which would give PBL one of six full casino licences in the city, had to receive the approval of Macau casino authorities before it could be finalised. However, questions have now been raised over plans for a $1.3 billion US float of the casino assets following the suspension of PBL’s Hong Kong-based partner, Melco, from the Hong Kong Stock Exchange on Friday morning.