Melco backtracks on delisting plan

Melco Resorts and Entertainment Philippines Corp. (MRP) is withdrawing its petition for voluntary delisting.

MRP, however, said its controlling shareholder would push through with the voluntary tender offer for up to 1.6 billion MRP shares.

It did not cite the reason for the withdrawal of its petition for voluntary delisting but over the past several weeks, shareholders had questioned the tender offer price, which they said was too low.

“Such tender offer shall be conducted for the purpose of increasing MCO Philippines’ shareholding interest in MRP instead of for the purpose of voluntary delisting of MRP,” it said.

The tender offer was originally scheduled to commence on Oct. 22.

“Due to the change in the purpose of the tender offer, MCO Philippines shall defer the tender offer until such time as will be stated in the amended tender offer report to be fixed by MCO Philippines to reflect among other things the amended purpose of the tender offer and the updated tender offer schedule,” MRP said in its disclosure.

MRP maintained that FTI Consulting Philippines, its financial advisor which conducted the evaluation of the price, gave a fair valuation.

It said FTI is accredited by both the Philippine Stock Exchange and the Securities and Exchange Commission. It was also certified as independent by the PSE for the purpose of issuing a fairness opinion.

MRP earlier requested for the delisting of its shares effective Nov. 13 or after it completes a tender offer to shareholders. MCO Philippines offered to acquire the shares at P7.25 per share or a total of P11.2 billion.

MRP decided to delist because its listed status in recent years has not contributed to its ability to raise funds despite considerable efforts and expenses being incurred to maintain such listed status.

The company is behind City of Dreams (COD) Manila, the second integrated casino resort to open in Entertainment City.