Melco Resorts & Entertainment Philippines Inc. said majority shareholder MCO Philippines is keeping a buyout offer of P7.25 per share to minority shareholders.
MCO Philippines said in an amended tender offer filed with the Securities and Exchange Commission that it planned to purchase 1.57 billion Melco shares held by minority shareholders for a total price of P11.38 billion.
The company said the purpose of the tender offer was to increase its shareholdings in Melco from the current 72.54 percent and was no longer for delisting purposes.
MCO Philippines said while it amended the purpose of the tender offer, it would proceed with the voluntary tender offer if the applicable requirements for voluntary delisting were met such as if the public float fell below 10 percent and it obtained the required Philippine Stock Exchange approval.
It said if the requirements were not met, Melco would remain listed.
Under the PSE rules, companies with a public float of less than 10 percent would automatically be delisted from the local bourse.
Tender offer period will be on Oct. 31 to Nov. 29.
Melco said while some minority shareholders were not happy with the price, they were not obliged to participate in the tender offer.
“The bidder [MCO Philippines] respects certain MRP shareholders may have different views on the terms of the tender offer, including the offer price. No MRP shareholder is under any obligation to participate in the tender offer,” the company said.
“If any MRP shareholder does not believe that the [tender] offer price of P7.25 per share is attractive, they may choose not to tender their MRP shares in the tender offer. Even if an MRP shareholder believes that the offer price is at or above fair value, they still have no obligation to participate in the tender offer,” it said.
Melco, owned by Macau-based casino operator Melco Crown Entertainment Ltd., was listed in the PSE through backdoor listing when it acquired Manchester International Holdings Unlimited Corp. in 2012.
It operates City of Dreams Manila, an integrated casino resort located at a 6.32-hectare property in government-sponsored Entertainment City in Parañaque City.