Asian gaming and entertainments giant, Melco International Development Limited, has reportedly filed a formal request to have its Melco Resorts and Entertainment (Philippines) Corporation subordinate de-listed from the Philippines Stock Exchange.
Listing not advantageous:
According to a report from GGRAsia, the action followed a September 10 revelation that the previous listing of the firm behind the City of Dreams Manila integrated casino resort had not contributed to its parent’s ability to raise capital in the Philippines.
Melco stated that it had initially viewed the listing as ‘an important tool’ that would have allowed its subsidiary ‘to raise funds in the Philippines public market’ so as to ‘provide capital for expansion and other business plans.’
Reportedly read a statement from Melco International Development Limited…
“However, MCO Philippines Investment Limited believes that Melco Resorts and Entertainment (Philippines) Corporation’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.”
Parent to conduct buy-back exercise:
As such, Hong Kong-listed, Melco International Development Limited, explained that it now intends to spend approximately $206.6 million in order to buy back some 1.54 billion shares in the subsidiary currently held by members of the public at a unit cost of just over $0.13.
Melco reportedly detailed that the buy-back scheme is due to be conducted by its MCO Philippines Investment Limited subsidiary, which already holds a majority of the shares in Melco Resorts and Entertainment (Philippines) Corporation.
Looking to the future:
Also responsible for the Altira Macau, Studio City Macau and City of Dreams Macau integrated casino resorts as well as the Mocha Clubs chain of electronic gaming machine parlors, Melco International Development Limited additionally declared that the de-listing will allow it to ‘consolidate its interests’ in order to ‘better support and facilitate’ its Philippines vehicle’s ‘future business plans.’