Critics say sale price is unfair
MCO (Philippines) Investments, the unit of Melco Resorts & Entertainment that’s planning to privatize Melco Resorts Philippines, has announced it has pushed back its October 3 tender offer. The unit hopes to buy up 1.6 billion publicly held shares.
According to a filing from MRP, which first requested to be delisted from the Philippine Stock Exchange in September, the tender has been postponed for two weeks “or until such time that it otherwise determines.”
According to Asia Gaming Brief, MCO now owns 72.77 percent of outstanding MRP shares and hopes to acquire all outstanding shares for a consideration of up to PHP11.4 billion (US$25.9 million), or PHP7.25 per share. MCO said the voluntary delisting of MRP will enable it to consolidate its interests in MRP and to better support MRP’s future business plans.
Critics including Jervin S. De Celis, a trader at Timson Securities Inc., say Melco is lowballing shareholders with the tender price, which is at about half the 2013 initial price. “That’s an unfair price now that MRP is starting to earn money. The shareholders, who bought higher or held on to the IPO price are the losers here,” De Celis told Business Week.
Melco defended the price, saying it falls within the fair-value range calculated by FTI Consulting Philippines, a company accredited by both the PSE and the Securities and Exchange Commission.
