MELCO RESORTS and Entertainment (Philippines) Corp. said on Monday it is voluntarily delisting from the Philippine Stock Exchange (PSE).
In a disclosure to the stock exchange, Melco Resorts Philippines said its board of directors had approved the voluntary delisting of the company’s common shares from the main board of the stock exchange.
The listed firm said its majority shareholder MCO (Philippines) Investments Limited will conduct a tender offer for up to P1,543,421,147 outstanding common shares held by the public at P7.25 per share. This represents 27.23% of the company’s outstanding capital stock.
Melco Resorts Philippines, which operates City of Dreams Manila, said the tender offer report will be filed with the PSE and Securties and Exchange Commission “on or around Sept. 17.”
For the first six months of 2018, the company reported its net income surged 437% to P1.89 billion, from P352.2 million during the same period a year ago, “primarily related to improved operating results as well as lower interest expense, net of capitalized interest.”
However, total operating revenues were 1% lower at P16.54 billion for the first half, due to the adoption of a new revenue standard “which resulted in higher commissions paid to gaming promoters being deducted from casino revenues.”
Casino revenues for the January to June period dropped 13% to P13.48 billion. This was attributed to the P4.2 billion “more commission paid to gaming promoters and complimentary goods and services deducted from casino revenues,” but was partially offset by higher casino revenues of P2.17 billion.
Revenues from the Nuwa hotel, Nobu Hotel and Hyatt City of Dreams, jumped 164% to P1.37 billion during the first six months of 2018.
On the other hand, operating costs and expenses dropped 9% to P13.56 billion.
Located inside the state-run Entertainment City, the City of Dreams Manila was developed by Melco Resorts Philippines alongside Sy-led Belle Corp.
City of Dreams Manila was the second integrated resort and casino to open in the area, after Bloomberry Corp.’s Solaire Resorts and Casino in 2013.
Shares in MRP rose 11.11% to close at P6.9 each on Monday.
