Melco (200 HK) Trading "Cheap" Into Rights Issue

• In my stub monitor, I see Melco International Development (200 HK) is trading "cheap" to Melco Resorts & Entertainment (MLCO US).

• Last month, Melco proposed one new rights share for two existing shares at a subscription price of HK$1.0286/share, a 72.93% discount to undisturbed, and a 64.28% discount to the TERP.

• Lawrence Ho will backstop ~54% of the rights, if need be. Depending on the level of support for the rights, expect Lawrence to further chip away against minorities.