MELCO RESORTS and Entertainment (Philippines) Corp. (MRP) is reducing the number of shares in its authorized capital stock alongside the decrease in its shareholder size.
In a disclosure to the stock exchange on Thursday, the operator of City of Dreams Manila said its board of directors approved the increase in the par value per share of its common shares to P500,000 each from P1 apiece before.
At the same time, the board also moved to decrease the company’s total number of common shares to 11,800 from 5.9 million previously.
Should any fractional shares be created from the reverse stock split, MCO (Philippines) Investments Ltd. — MRP’s largest shareholder — has proposed to acquire them all at a price of P7.25 per share.
MCO Investments currently owns more than 90% of MRP’s outstanding capital stock, after conducting a tender offer to buy out its shareholders. A total of 1.34 million shares were tendered by the public out of the total 1.57 million shares they held.
The tender offer was conducted for MCO Investments to consolidate its shareholdings in the company. Prior to the tender offer, MRP disclosed its plan to delist from the stock exchange, citing its inability to raise funds through the local market despite efforts to maintain its listed status.
The company withdrew its application for voluntary delisting after complaints from several market participants of the low tender offer price.
Trading of shares in MRP have since been suspended as the company no longer complied with the minimum public ownership rule of 10% after the tender offer. This makes it eligible to be removed from the local bourse through involuntary delisting.
MRP’s net income attributable to the parent stood at P2.66 billion in 2018, soaring 654% from the P353 million it reported in 2017. — Arra B. Francia
