Melco Resorts & Entertainment plans to delist its Philippine unit from the local stock exchange, as it has not been successful in raising capital there.
MCO (Philippines) Investment, the parent company of Melco Resorts and Entertainment (Philippines) Corporation, will buy the remaining 27.2 percent of outstanding shares held by the public.
Melco, which is pushing for a license in Japan, operates the City of Dreams Manila IR in the Philippine capital. Melco has two IRs in Macau and is building a further property on the island of Cyprus.
According to a filing from Melco International Development, MCO Philippines decided to delist Melco Resorts and Entertainment (Philippines) Corporation from the stock exchange as its fundraising ability was not performing as expected in recent years “despite considerable efforts and expenses being incurred to maintain its listed status.”
MCO, which currently owns 72.77 percent of shares in Melco Resorts and Entertainment (Philippines) Corporation said it intends to acquire the remaining 1.5 billion outstanding shares for 7.25 pisos (about US$0.14) per share.
The delisting is due to occur on or around September 17, 2018, according to the filing.
On Monday, Bernstein said the transaction should be viewed favorably “as it will reduce some of the complexity in MLCO by eliminating a publicly traded affiliate with limited liquidity and allow MLCO more flexibility in further growing the Philippines business.” (AGB)