Melco PH withdraws voluntary delisting application
Melco Resorts and Entertainment Philippines Corp. has scrapped plans to voluntarily delist from the stock exchange after some minority shareholders rejected the tender offer for the purchase of up to 1.57 billion shares at P7.25 apiece.
The shares represent about 27 percent of Melco Resorts.
However, its majority shareholder MCO (Philippines) Investments Ltd. is still bent on pursuing its tender offer which was originally scheduled to start on Oct. 22.
MCO shall continue with the tender offer for the purpose of increasing its shareholdings in the City of Dreams Manila operator.
Under the rules of the Philippine Stock Exchange, firms whose public float falls below 10 percent are candidates for involuntary delisting.
Small investors strongly opposed the share price offered by MCO, saying it was unfair for investors who bought during the firm’s re-IPO in 2013. Melco shares were sold at P14 each back then.
MCO, however, argued that the offer price was based on the high end of the fair value range for Melco shares.
Melco, which listed via the backdoor in 2013, noted that the tender offer price represented a 14 percent premium over the three-month volume weighted average price of the shares ended on Sept. 7.