Melco voluntarily delisting shares
Melco Resorts and Entertainment (Philippines) Corp., the integrated casino resort behind City of Dreams, yesterday announced plans to voluntarily delist from the main board of the Philippine Stock Exchange.
In a disclosure, Melco said it would also conduct a tender offer of shares worth about P11.2 billion.
Melco Philippines said its board approved the voluntary delisting of the common shares of the company from the PSE’s main board subject to compliance with the PSE rules on delisting.
“In relation to the delisting and in compliance with the PSE rules on voluntary delisting, the corporation has been notified by MCO Philippines Investments Ltd., the majority shareholder of the corporation, that MCO Philippines intends to conduct a tender offer for up to 1.5 billion outstanding common shares by the public representing 27.23 percent of the outstanding capital stock of the corporation at a tender offer price of P7.25 per share,” Melco said.
The corporation has been further notified by MCO Philippines that MCO Philippines would publish an announcement regarding its intention to conduct the tender offer for the purpose of a voluntary delisting of the corporation, it said.
“The listed status was considered as an important tool allowing Melco to raise funds in the Philippine public market, in order to provide capital for expansion and other business plans. However, Melco’s listed status in recent years has not contributed to its ability to raise funds despite considerable efforts and expenses being incurred to maintain its listed status,” Melco said in an email reply to The STAR.
In industry parlance, delisting is the removal of a listed security from a stock exchange. The delisting of a security can be voluntary or involuntary and usually results when a company ceases operations, declares bankruptcy, merges, does not meet listing requirements, or simply seeks to become private.
Shares of Melco closed at P6.90 each yesterday, up 11.11 percent.
Melco Resorts is behind City of Dreams (COD) Manila. It has an agreement with Belle Corp., the high-end leisure company of the Sy family, which accords it a share of gaming revenues.
COD is the second integrated casino resort to open at the 100-hectare Entertainment City in Parañaque.
The first casino to open was Enrique Razon’s Solaire Resort and Casino while the latest to open was Okada Manila founded by embattled Japanese casino king Kazuo Okada.