Melco Resorts defers tender offer

MANILA, Philippines — Melco Resorts and Entertainment Philippines Corp. said its majority shareholder MCO Philippines Investments Ltd. has decided to defer its tender offer. 

The offer was initially scheduled to commence on Oct. 3 for up to 1.7 billion outstanding common shares held by the public. 

The tender offer is part of its plan to delist from the Philippine Stock Exchange (PSE). 

Melco said the tender offer has been postponed by two weeks or “until such time that it determines otherwise.” 

The listed integrated casino resort  formally filed with the PSE a petition for voluntary delisting after its board of directors approved the plan.

Melco requested that its shares be delisted from the PSE effective Nov. 13 or after it completes a tender offer to shareholders.

In its plan, Melco will make a tender offer to shareholders at a price of P7.25 per share. 

It also said in the letter that FTI Consulting Philippines , the bidder’s independent financial adviser, conducted the evaluation of the price and other terms and conditions of the tender offer and opined that such price is fair.

The tender offer of shares would amount to P11.2 billion.

Shareholders, however, complained that the tender offer price was too low. 

Melco decided to delist because its listed status in recent years has not contributed to its ability to raise funds despite considerable efforts and expenses being incurred to maintain such listed status.

The company is behind City of Dreams (COD) Manila. It has an agreement with Belle Corp., the high-end leisure company of the Sy family which accords it a share of gaming revenues.

COD is the second integrated casino resort to open at the 100-hectare Entertainment City in Parañaque after Solaire Resort & Casino. It was followed by Okada Manila.