Tender offer compliant with PSE rules — Melco

MCO Philippines Investments Ltd., maintained that its tender offer and request for voluntary delisting of Melco Resorts and Entertainment Philippines Corp. are consistent with the Philippine Stock Exchange’s rules on delisting.

It noted that FTI Consulting Philippines, its financial advisor which conducted the evaluation of the tender offer price, is accredited by both the PSE and the Securities and Exchange Commission and was certified as independent by the PSE for the purpose of issuing a fairness opinion.

“Further, as stated in the tender offer report, under the PSE rules on delisting, MCO must acquire at least 95 percent of the outstanding capital stock of MRP for the PSE to consider and approve a petition for voluntary delisting.

“While it was also stated in the tender offer report that in the event that MCO fails to obtain at least 95 percent of the outstanding capital stock of MRP in the tender offer, MRP will nonetheless proceed with the request for voluntary delisting, such request remains subject to the approval of the PSE,” MCO said.

Each MRP shareholder shall have the right and full liberty to consider for itself whether or not to participate in the tender offer and MCO will fully comply with the applicable rules and decision made by the PSE on MRP’s petition to delist, it added.

MRP’s tender offer for up to 1.7 billion shares held by the public was initially scheduled to commence on Oct. 3.

The listed integrated casino resort had formally filed with the PSE a petition for voluntary delisting after its board of directors approved the plan.

MRP requested that its shares be delisted from the PSE effective Nov. 13 or after it completes a tender offer to shareholders.

The tender offer price was set at P7.25 per share for a total consideration of P11.2 billion.

However, shareholders complained that the tender offer price was too low.

MRP said it 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.

Delisting is the removal of a listed security from a stock exchange. It 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.

MRP is the company behind the City of Dreams Manila.