Melco stakeholder to buy back shares

MELCO Resorts and Entertainment Philippines Corp.’s majority shareholder will begin holding its tender offer at the end of October to increase its stake in the City of Dreams Manila integrated resort and casino operator.

In a disclosure on Tuesday, Melco said MCO Philippines Investments Ltd. would repurchase the 1.57 billion Melco shares held by the public for P7.25 each. The offer will begin on October 31 and run for 20 business days.

Shareholders are not obliged to participate, it added.

“The bidder would like to emphasize and remind…shareholders that not all…have to agree with and accept the terms of the tender offer, including the offer price,” Melco said.

“The bidder respects that certain shareholders may have differing views on the terms of the tender offer,” it added.

This came a week after Melco withdrew its petition to delist from the Philippine Stock Exchange (PSE). It did not elaborate on its decision, but said MCO would push through with the offer.

If the company buys back the shares, Melco’s minimum public ownership will fall below the mandated 10-percent float and may call for involuntary or forced delisting.

PSE Chief Operating Officer Roel Refran earlier told reporters that the bourse had advised Melco to discuss the planned delisting with shareholders, citing complaints from them about the low tender offer price.

Analysts had tagged the offer price as “unfair to shareholders” and “not a good deal,” as some are at risk of losing nearly half of their investments, particularly those who purchased during the firm’s follow-on offer in April 2013. During that offer, shares were priced P14 each.

Melco said in September it had planned to exit the PSE’s main board because of its inability to raise funds for expansion.

Melco shares dipped 7 centavos, or 0.98 percent, to close at P7.08 each in line with the PSE index’s 0.53-percent decline on Tuesday.