Melco Resorts to delist
CITY of Dreams operator Melco Resorts and Entertainment Philippines Corp. (MRP) is planning to delist from the Philippine Stock Exchange (PSE) and is preparing to buy back shares held by the public.
Melco Resorts told the bourse on Monday that its board had approved the voluntary delisting of its common shares. It added that majority shareholder MCO (Philippines) Investments Ltd. intended to conduct a tender offer for a little over 1.5 million MRP shares, representing 27.23 percent its outstanding capital stock, at P7.25 apiece.
The offer price represents an approximately 14-percent premium over the three-month volume weighted average price of MRP shares as of September 7, 2018. The company’s shares were up 69 centavos or 11.11 percent on Monday at P6.90.
Full information on the tender offer will be filed with the Securities and Exchange Commission and the PSE “on or around” September 17, Melco Resorts said.
In a separate disclosure to the Hong Kong Stock Exchange, parent company Melco International Development Ltd. said the request for voluntary delisting would proceed regardless of the level of acceptances from shareholders.
MCO, it noted, had “viewed the listed status as an important tool allowing MRP to raise funds in the Philippines public market, in order to provide capital for expansion and other business plans.”
“However, the bidder believes that MRP’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,” it added.
Melco International said MCO believes that the tender offer would give existing Melco Resorts shareholders an opportunity to realize a premium on their investment.
Delisting, it added, will allow MCO to consolidate its interests in Melco Resorts “to better support and facilitate MRP’s future business plans.”
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