Sy family the wealthiest in the Philippines
Melco Resorts & Entertainment has announced that it is considering a sale of company shares in its Philippines subsidiary to Premium Leisure Corp., its partner in the market.
In a May 18 announcement, Melco disclosed that it’s held “preliminary discussions” with PLC in relation to a “potential transaction whereby PLC or its affiliated entities may become equity holders of the corporation.”
PLC currently has an operating agreement with the Philippine subsidiary that entitles it to either 50 percent of EBITDA or 15 percent of mass gaming win plus 5 percent of VIP win—whatever is greater—generated at Melco’s City of Dreams Manila, in the capital’s Entertainment City casino zone.
PLC’s parent, Belle Corp., owns the land where City of Dreams Manila is located and also gets rental fees for the land. According to Inside Asian Gaming, Belle Corp. recently submitted a proposal to Melco Resorts Philippines to expand City of Dreams Manila onto one hectare (2.47 acres) of vacant land adjacent to the Entertainment City property.
The potential deal would make PLC or its affiliated entities “equity holders of Melco Resorts Philippines,” said the announcement.
Belle Corp. President Manuel Gana has said that if Melco opts not to expand, Belle Corp. would be “free to do something else,” reported GGRAsia.
Forbes described PLC’s Sy family as the Philippines “wealthiest family,” with an empire that “spans the retail, real estate, hospitality, banking, mining, education and healthcare industries. The clan’s net worth was estimated at $20.1 billion last year, making it the wealthiest in the Philippines and ninth in Asia. The founder and patriarch, Henry Sy Sr., has topped the Philippine Rich List for 10 years in a row. His current net worth is estimated at $18.7 billion.”
