Travellers Int’l to voluntarily delist
TRAVELLERS International Hotel Group Inc. announced on Wednesday that it would delist voluntarily from the Philippine Stock Exchange ( PSE) as a corporate strategy to maintain its competitive edge.
“The conversion from a public entity into a private company will allow the company to timely address evolving market demands and rapidly changing customer needs without compromising its business strategies to competition,” the Andrew Tan- led operator of Resorts World Manila said in a filing.
As mandated by PSE delisting policies, Travellers International will conduct a tender offer of up to 1.58 billion common shares.
“A minimum of 825,607,842 common shares must be validly tendered,” it said.
The offer price is yet to be determined.
Trading of Travellers International’s shares were suspended on Wednesday after the announcement.
“In order to protect the investing public ( particularly shareholders in different time zones) and to allow market participants to process and appreciate the disclosure of the Company on the foregoing, the company hereby requests the PSE for the voluntary trading suspension of all its listed shares,” it said.
At least 95 percent of the total issued and outstanding common shares of Travellers International will be held by non- public shareholders following the offer.
The hotel and casino firm saw its net income plunge by 50 percent to P842.58 million in the first semester from the yearearlier P1.69 billion as gaming and other expenses increased.
For the second quarter alone, its net profit dropped by 51.82 percent to P599.20 million from P1.24 billion a year ago due to “higher finance charges and increase in depreciation expense.”
Average occupancy rate for its hotels dropped to 77 percent from the previous year’s 81 percent amid the opening of additional 747 hotel rooms.
Among the hotels in Travellers International’s portfolio are Marriott Hotel Manila, Maxims Hotel, Hilton Manila, Holiday Inn Express Manila Newport City and Sheraton Manila.
TYRONE C. PIAD