Supplier News

Spain – MelcoLot to go it alone as Veremonte pulls out of BCN World

By Phil - 16 October 2015

Hong Kong-based MelcoLot has confirmed that it ‘remains interested’ in the tender process to operate a casino at BCN World in Barcelona, Spain, despite having severed a deal to bid for a licence with Veremonte España SL.

Veremonte is reported to have walked out on the project having missed a second funding deadline and passing control of the project to the Catalan government.

MelcoLot said that ‘due to the lack of basis of further cooperation,’ the two companies had opted to terminate the 50-50 joint venture. The joint venture had gone through to the second stage of the tender.

“A notice of withdrawal from the tender process was sent to the Catalan government on October 8,” Melco informed adding that the joint venture ‘will be wound up in due course.’

Melco had already issued a solo bid via its Melco Property Development division. If Melco Property Development is granted a licence to operate a casino at BCN World, MelcoLot and Melco International will buy 99 per cent of the issued share capital of Melco Property Development for US$64.9m.

Melco said: “This is the best available platform in the current circumstances for the MelcoLot group to continue participating in the tender and it represents an opportunity to expand the MelcoLot group’s business interests into the gaming and casino sector in the developing market of Spain. In light of this opportunity, the MelcoLot group will benefit from the transaction with the MelcoLot group’s level of participation in the project being 99 per cent if the transaction is approved, compared to 50 per cent as per the previous cooperation with Veremonte.”

All the signs are that the Catalan government will issue the licence in the second quarter of 2016. Every party interested in the project has made it to the second stage with US-based Hard Rock and Catalan casino operator Grup Peralada joining MelcoLot.