Melco Resorts Philippines Plans to Delist from the Stock Exchange

Melco Resorts PhilippinesIn the latest development, the favourite Melco Resorts and Entertainment (Philippines) has announced its plans to delist voluntarily from the PSE or Philippines Stock Exchange. Its majority of shareholders are looking forward to buying 1.54 billion shares which are owned by the public at the moment.

Melco Resorts Philippines is a subsidiary unit of Melco Resorts and Entertainment Limited which is a big casino operator in Asia. The company that operates City of Dreams Manila has not given any reasons to delist its shares and have not shared any details for a date to enlist again in the Philippines Stock Exchange.

In the statement, Melco Resorts Philippines say that the casino resort is looking forward to buying the publically owned 1.54 billion shares that comprise capital stock worth 27.23 percent. It is likely that the company would offer the public an amount of PHP 7.25 per share with the overall cost in the range of PHP 11.19 billion.

Zhen Gong, Kelsey Zhu and Vitaly Umansky, who are analysts at Sanford Bernstein, said that the offer price stands at 17% premium in the closing price on Friday at PSE. Also, it is at 14% premium over weighted average price in the last 90 days.

Delisting to Help Melco Resorts Philippines

The three analysts at the Sanford Bernstein are of the opinion that the new plan to delist from the PSE can be seen as a favourable way to get rid of some of the complexities of Melco Resorts. Getting rid of the publicly traded affiliate would allow the casino company to move forward and gain a firm grip in the gambling industry.

The City of Dreams Manila is finally completed with due co-operation of Premium Leisure Corp which is a subsidiary unit of Belle Corp. Belle Corp is run and operated by Sy Family and is a big name in gaming and real estate sector. Sy Family is rumoured to be the wealthiest family in the Philippines.

Melco to Officially File for Delisting Next Week

Additional information about the pending tender is yet to make available to the public. The offer is likely to come after Melco Resorts files with Securities and Exchange Commission around September 17, 2018.

Before a delisting is processed by PSE, 95% of the share must be helped up. However, the delisting is permitted by the PSE if the company concerned is able to prove it is able to pick up outstanding shares.

In May this year, Melco Resorts was involved in discussion with Belle Corp where the latter was asked to pick any equity stake in City of Dreams Manila that comprises hotel and other non-gaming facilities.

Related Articles

Italy Launches USR Program to Combat Gambling Addiction

AAMS (Agenzia delle dogane e dei Monopoli) which is the gambling regulator in Italy has decided to start a new

The Philippines Advised to Levy Entry Fees in the Casinos

According to a report published recently by National Tax Center of Philippines under the Department of Finance, Philippines should levy

Growth of Online Gambling Revenue in NJ While AC Casino Revenue Drops

In July 2017, there is a decline of 2.7 percent in the combined casino revenue in Atlantic City when compared

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment