Melco Resorts makes official request to delist from Philippine Stock Exchange

Melco Resorts and Entertainment (Philippines) Corp (MRP) has officially requested to be delisted from the Philippine Stock Exchange.

In a Friday filing, MRP said it had also been informed by its controlling shareholder, MCO (Philippines) Investments Limited, of the latter’s intention to conduct a public tender offer for up to 1.57 billion publically-owned and other MRP common shares at an offer price of Php7.25 per share. MCO (Philippines) Investments Limited is the controlling shareholder of MRP with its 3.95 billion shares representing a 72.77% stake in the company.

MRP added that the tender offer period would run from 3 October to 30 October 2018 with shares to be delisted from the Philippine Stock Exchange effective 13 November 2018.

If fully executed, the tender will cost Melco Resorts around Php11.2 billion (US$208 million).

Brokerage Sanford C Bernstein stated in a note last week that the transaction should be viewed favorably “as it will reduce some of the complexity in Melco by eliminating a publicly traded affiliate with limited liquidity and allow Melco more flexibility in further growing the Philippines business.”