Hong Kong-based Melco International Development Ltd. said Sept. 10 that the board of Melco Resorts and Entertainment (Philippines) Corp., a subsidiary of its gaming and resort unit Melco Resorts & Entertainment Ltd., approved the voluntary delisting of the company's common shares from the main board of the Philippine Stock Exchange.
MCO (Philippines) Investments Ltd., which owns 72.77% of Melco Philippines, will conduct a tender offer for up to 1,543,421,147 of the company's common shares held by the public, representing 27.23% of Melco Philippines' outstanding capital stock, at a price of 7.25 Philippine pesos per share.
The tender offer price represents a premium of approximately 14% over the shares' three-month volume weighted average price as of Sept. 7.
Melco International said MCO believes that Melco Philippines' 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." The subsidiary operates the City of Dreams Manila integrated resort.
Melco Philippines' board plans to apply for delisting on or around Sept. 17.
As of Sept. 10, US$1 was equivalent to 53.88 Philippine pesos.