Casino operator Melco Resorts and Entertainment (Philippines) Corp. withdrew its bid to delist the company’s shares from the Philippine Stock Exchange but will proceed with a planned tender offer.
Melco received strong opposition from the planned tender offer, especially on the valuation of the shares.
Melco said in a disclosure to the stock exchange it informed the Philippine Stock Exchange that it was withdrawing its petition for voluntary delisting.
Melco said controlling shareholder MCO (Philippines) Investments Ltd. would push through with a planned tender offer to increase its stake in the gaming company.
MCO Philippines plans to conduct a tender offer for up to 1.57 billion Melco shares owned by minority investors.
Melco said MCO Philippines would file an amended tender offer to reflect the revised purpose of the tender offer and the schedule.
Melco did not say if it would maintain the tender offer price of P7.25 per share that was strongly opposed by minority investors,
PSE chief operating officer Roel Refran in an interview at the sidelines of Philippine Investment Forum sponsored by Euromoney welcomed the decision of Melco to remain listed with the local bourse.
“This is a development that surely calm down sentiments from minority shareholders who did have certain issues when they (Melco) first came up with the valuation,” Refran said.
“It also reinforces the prospects, as the company sees the value of carrying on and remaining to be a listed company. I think that is fully appreciated by the investors who raised (a)couple of issues as they do see the value in the continuing listing of the company” he added.
MCO Philippines in September reported plans to delist Melco Resorts, saying its listed status in recent years had not contributed to the ability to raise funds.
Several minority shareholders questioned the P7.25 per share tender offer price considering that Melco conducted an equity placement in 2013 at a price of P14 apiece
Melco, owned by Macau-based casino operator Melco Crown Entertainment Ltd., was listed in the PSE through a backdoor listing when it acquired Manchester International Holdings Unlimited Corp. in 2012.
It operates City of Dreams Manila, an integrated casino resort located in a 6.32-hectare property at government-sponsored Entertainment City in Parañaque City.