GLONGHUI September 27|International Entertainment (01009.HK) announced that on September 27, 2023, MSPI, NCLI and PAGCOR entered into a temporary license agreement, according to which PAGCOR granted a temporary license to the licensee to establish and operate a casino and develop an integrated resort in Manila, Philippines. PAGCOR must issue an official casino gaming license after the completion of the project and PAGCOR approves that the licensee complies with the implementation plan for the actual total project cost.
The validity period of the temporary license and official casino gaming license is consistent with the PAGCOR franchise, starting from the date of the provisional license agreement and ending on July 11, 2033. An official casino gaming license may be renewed under the same terms and conditions as a temporary license.
Under the provisional licence agreement, the licensee has agreed to undertake a total investment of not less than US$1 billion and no more than US$1.2 billion in the project. As a necessary condition for PAGCOR to grant a temporary license to the licensee to establish and operate the casino under this project, the licensee must pay PAGCOR a monthly license fee starting from the date the casino commences operation.
Prior to the grant of the provisional licence, the licensee submitted a general development plan proposal to PAGCOR for approval, which forms part of the provisional licence agreement. According to the proposal, the total construction area of the entire integrated resort development must be at least 250,000 square meters. The core conceptual components of the proposal were approved by PAGCOR, including a hotel with around 800 five-star luxury hotel rooms, a casino, several restaurants, several leisure facilities, and several shopping malls. The components of the project can respond to changes in market conditions, but the core concept remains the same, and the investment commitment amount will not be reduced in any way. Changes to the components of the project are subject to PAGCOR's prior written consent.