Macau Airport company carries out capital reorganisation to absorb losses

15 May 2012

Shareholders of Macau airport company Companhia do Aeroporto de Macau (CAM) Monday approved a capita reorganisation – simultaneously reducing and increasing share capital – in order to raise 1.974 billion patacas (US$246.75 million) to absorb losses, the local press reported.

During an extraordinary general meeting shareholders agreed to reduce the company’s capital from 4.960 billion patacas to 1.014 billion patacas followed by a capital increase by issuing 19.47 million preferential shares without voting rights at a nominal price of 100 patacas each, thus replacing the previous capital.

A source contacted by Portuguese news agency Lusa said that the two moves were unanimously approved and that shareholders will now be contacted to subscribe the new shares in order to maintain their shareholdings and keep the company’s shareholder structure unchanged.

The extraordinary general meeting was called due to accumulated losses by CAM estimated to total around 1 billion patacas related to loans taken on to finance construction of the Macau international airport.

The main shareholders of CAM, which owns and manages the airport, are the Macau government (55 percent) and Sociedade de Turismo e Diversões de Macau (33 percent), and the remaining 12 percent is owned by a number of individuals and companies from both Macau and mainland China. (macauhub)