MGM raises payment caps to Shun Tak

    MGM China said it’s raising the annual caps payable to the Shun Tak Group under its renewed master service agreement because of an expected increase in business volumes over the next few years.
    The caps have been raised for the remainder of this year, and for 2015 and 2016.
    The cap for this year goes from HK$155,000 ($19,999) to $270,000, for next year from $155,000 to $310,000 and for 2016 from $264,000 to $460,000.
    As of 30 June 2014, the payments made since 1 January 2014 from the group to the Shun Tak Group under the accord were HK$100,648,000.
    The revisions take into account the historical amount paid for services under the accord, the current trend of the business volume with Shun Tak for 2014, the estimated quantity of ferry tickets and the volume of travel services, including accommodation and transportation, transportation services, laundry services, advertising services
    and property cleaning services.
    The opening of the group’s new Cotai resort is one of the reasons for the anticipated increase in business volumes.