Tycoon Andrew Tan plans to delist Travellers International Hotel Group Inc., the operator of Resorts World Manila, from the Philippine Stock Exchange.
TIHGI said in a disclosure to the exchange its board of directors in a meeting held Aug. 13 approved the voluntary delisting of the company’s common shares.
The gaming firm said it would conduct a tender offer for up to 1.582 billion common shares owned by the public.
The buyback of 1.582 billion shares will require the company to shell out P8.6 billion based on the stock’s closing price of P5.43 per share.
“The conversion from a public entity into a private company will allow the Company to timely address evolving market demands and rapidly changing customer needs without compromising its business strategies to competition,” the company said.
TIHGI said it would file with the Securities and Exchange Commission and the PSE on or before August 19 the terms and conditions of the tender offer, including the price and timetable. The company plans to be delisted from the PSE on Oct. 15, 2019.
Listed in 2013, TIHGI opened the Resorts World Manila, country’s first integrated casino and leisure complex in Pasay City in August 2009. It is currently developing its second integrated resort and casino called Westside City Resorts World on a 30.5-hectare property within the Pagcor Entertainment City complex in Parañaque.
TIHGI registered a 50.4-percent decline in net income in the first six months of the year to P844.7 million from P1.67 billion recorded year-on-year due to higher financing charges and higher depreciation expense.
Gross revenues increased 49.9 percent to P16.5 billion in the six-month period from P11 billion on year.
The company attributed the increase to the improvement in volume in both the non-VIP and VIP segments as a result of a bigger gaming capacity and 747 additional rooms from Hilton Manila Hotel and Sheraton Manila Hotel.
Gaming revenues rose 50.3 percent from January to June this year to P13.5 billion, while non-gaming sales including those from hotel, food, beverage businesses climbed 51.8 percent to P2.3 billion.
