Melco Resorts & Entertainment has revealed that it is contemplating the sale of shares in its Philippines subsidiary, Melco Resorts and Entertainment (Philippines) Corporation, to local partner Premium Leisure Corp (PLC).
In a Friday announcement, the company said it has held “preliminary discussions” with PLC in relation to a “potential transaction whereby PLC or its affiliated entities may become equity holders of the corporation.”
Melco stressed that there was no guarantee the transaction would take place given that the discussions are only preliminary.
PLC currently has an operating agreement with a subsidiary of Melco Resorts (Philippines) that entitles it to the greater of either 50% of EBITDA or 15% of mass gaming win plus 5% of VIP win derived from City of Dreams Manila.
PLC’s parent company Belle Corp, which owns the land upon which City of Dreams Manila sits, also derives rental fees from Melco for use of the land.
Belle Corp recently submitted a proposal to Melco Resorts (Philippines) to expand City of Dreams Manila onto one hectare of vacant land it holds adjacent to the Entertainment City precinct property.
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