0001193125-26-194218
SEC filingMelco International Development Limited announced an intra-group transfer of 100% equity in its IP holding subsidiary Target Co to a Melco Resorts subsidiary for US$375 million cash on April 30, 2026.
The transaction restructures the Group's intellectual property holdings by transferring the Target Co, which owns critical Trademarks used in Melco Resorts Group's gaming and non-gaming operations across multiple jurisdictions, to a wholly-owned subsidiary of Melco Resorts. This aligns IP ownership with the primary operating platform, enhancing management, protection, and enforcement efficiency. Melco International Development Limited, holding 56.32% of Melco Resorts, effectively reduces its direct interest in Target Co from 100% to 56.32% but maintains consolidation of its financial results with no expected gain or loss recognized. The US$375 million consideration, determined via arm's length negotiations based on trademark portfolio value and license fee income (US$6.0 million in 2024, US$32.7 million in 2025), provides cash for debt reduction and working capital, strengthening the Company's credit profile. Post-completion, the Company secures a perpetual royalty-free license for limited 'Melco' and '新濠' uses in its corporate name, websites, signage, and non-gaming subsidiaries, while broader trademark rights transfer to Melco Resorts Group.