Melco Resorts to delist shares from Philippine stock market

MELCO RESORTS and Entertainment (Philippines) Corp. (MRP) expects its public float to fall below the required percentage after the completion of its majority shareholder’s tender offer, making it eligible to be removed from the local bourse.

In a disclosure to the stock exchange on Wednesday, MRP said MCO (Philippines) Investments Limited has completed its tender offer, where it accepted 1.34 million common shares tendered by the public, out of the total 1.57 million shares they held.

The shares are scheduled to be crossed on the Philippine Stock Exchange on Dec. 10, after which MCO Investments will own 96.1% of MRP’s outstanding capital stock. With this, only 3.9% will be held by the public.

“As such, after the crossing of the tendered shares, it is expected that MRP’s public ownership will fall below the minimum public ownership requirement under the Amended PSE Rules on Minimum Public Ownership which requires a minimum public float of not less than 10% of the outstanding capital stock,” MRP said.

The company said it will issue another disclosure after the shares are crossed from the PSE.

The PSE suspended trading of MRP shares for one hour from 9 a.m. to 10 a.m. on Wednesday to allow investors to digest this information. It also noted that the company could be delisted from the exchange if it fails to comply with the 10% minimum public ownership rule set by the Securities and Exchange Commission.