Melco now owns almost all stock
Last Monday, the Philippine Stock Exchange suspended trading of Melco Resorts & Entertainment shares after a recent tender offer to buy back public shares put the inventory of available shares fell below the minimum required by the local bourse.
When the share tender is complete, Melco International will control 96.1 percent of Melco Resorts Philippines, up from 72.54 percent. That left the public float at approximately 2.1 percent, below the minimum pubic ownership requirement. Melco Resorts Philippines operates City of Dreams Manila in the Entertainment City casino zone.
Last September, according to GGRAsia, Melco’s Macau unit said the Philippine subsidiary’s PSE listing on the PSE was not helping the group raise funds in that market. Melco planned to remove the listing but backed down when stockholders resisted. Inside Asian Gaming reports that at the time, the operator said the tender offer would go forward for the purpose of increasing the shareholding of MCO in the company.
“The change of purpose for the tender offer, which led to the withdrawal of the petition to delist by MRP on 19 October 2018, is aimed at alleviating certain investors’ concerns that the potential delisting may exert undue pressure on their decision process related to the acceptance of the tender offer,” MRP stated.
Shares were offered at PHP7.25 each.
