MARKET HEADLINE: SHORT SELLING BY OCTOBER

Melco Resorts and Entertainment (Phils.) Corp. (delisting)
4-25

Melco Resorts’ Philippines partner proposes City of Dreams Manila expansion

Philippines real estate investor Belle Corporation has submitted a proposal to its partner, Melco Resorts (Philippines), to expand City of Dreams Manila onto one hectare of vacant lands it holds adjacent to the Entertainment City precinct property.

Belle Corp President Manuel Gana revealed his company’s request while talking with local media on Tuesday, stating that City of Dreams Manila was now running near full capacity and needed to build more room inventory in order to grow.

According to the Philippines Inquirer, the vacant land would be used primarily for non-gaming facilities including at least one new hotel.

“The ball is in Melco’s court. They have a lot of things on their plate,” Gana said, adding that Belle Corp would be willing to develop the land alone should Melco decline the opportunity.

Belle would be “free to do something else,” he said. “We can build our own hotel and capitalize on City of Dreams clientele but we prefer Melco to get involved so it can be consolidated into City of Dreams.”

Gana also expressed an interest in acquiring some of PAGCOR’s casinos via the gaming regulator’s sell-off, pointing to locations in Davao and Laoag as particularly attractive.

Belle Corp announce this week a 10% growth in net income in the three months to 31 March 2018 to Php857 million (US$16.3 million), including an 8% year-on-year increase in income from its revenue share deal with Melco Resorts to Php474 million.


source: http://www.asgam.com/news/item/4627-melc...nsion.html
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5-19

Premium Leisure Corp in talks to become Melco Resorts (Philippines) shareholder

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.


source: http://www.asgam.com/news/item/4766-prem...older.html
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7-26

....hhhhmmmnnnn  Undecided

Melco revenues end flat in Q2

THE OPERATOR of integrated resort and casino City of Dreams Manila reported flat revenue growth for the second quarter of 2018, weighed down by higher commissions and a change in accounting practices.

In a disclosure to the stock exchange on Wednesday, Melco Resorts and Entertainment (Philippines) Corp. (MRP) said net revenues at City of Dreams Manila reached $173.9 million for the three months ending June, 1.3% lower than the $176.2 million it generated in the same period a year ago.

“The decrease was mainly due to higher commissions reported as a reduction in revenue upon the adoption of a new revenue recognition standard issued by the Financial Accounting Standards Board, partially offset by improved gross gaming revenues,” the company said.

Without a change in accounting standards, MRP said revenues would have increased by around 8% year-on-year to $191 million.

The integrated resort and casino recorded a 39% increase in earnings before interest, taxation, depreciation, and amortization (EBITDA) for the quarter to $87.3 million, which the company attributed to the better performance of its gaming segments.

Rolling chip volume generated $3 billion for the period, slightly lower than the $3.2 billion seen in the same quarter a year ago. Rolling chip win rate increased to 3.7%, with an expected win rate range of 2.7% to 3%.

Revenues from mass market table games grew by 16% to $196.9 million, after hold percentage went up to 29.4%, against a hold rate of 28.5% in the same period a year ago.

Gaming machine handles reported a 13% increase to $855.9 million, with a win rate of 5.9% — steady from the same quarter a year ago.

Meanwhile, non-gaming revenue from the City of Dreams Manila climbed by 3.9% to $29.1 million for the April to June period. The entertainment complex observed a 98% occupancy rate from its hotel rooms, improving from the 95% average occupancy rate in the same period a year ago.

The City of Dreams Manila is one of the integrated resort and casino complexes inside the Philippine Amusement and Gaming Corp.’s Entertainment City in Parañaque City. It stands alongside Bloomberry Resorts Corp.’s Solaire Resort & Casino and Universal Entertainment Corp.’s Okada Manila.

The earnings report was part of the unaudited financial results for the second quarter of MRP’s controlling shareholder, Melco Resorts & Entertainment Limited, which was submitted to the United States Securities and Exchange Commission.


source: http://www.bworldonline.com/melco-revenu...lat-in-q2/
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9-11

...delisting na 'to

Melco Resorts PHL to delist from PSE

MELCO RESORTS and Entertainment (Philippines) Corp. said on Monday it is voluntarily delisting from the Philippine Stock Exchange (PSE).

In a disclosure to the stock exchange, Melco Resorts Philippines said its board of directors had approved the voluntary delisting of the company’s common shares from the main board of the stock exchange.

The listed firm said its majority shareholder MCO (Philippines) Investments Limited will conduct a tender offer for up to P1,543,421,147 outstanding common shares held by the public at P7.25 per share. This represents 27.23% of the company’s outstanding capital stock.

Melco Resorts Philippines, which operates City of Dreams Manila, said the tender offer report will be filed with the PSE and Securties and Exchange Commission “on or around Sept. 17.”

For the first six months of 2018, the company reported its net income surged 437% to P1.89 billion, from P352.2 million during the same period a year ago, “primarily related to improved operating results as well as lower interest expense, net of capitalized interest.”

However, total operating revenues were 1% lower at P16.54 billion for the first half, due to the adoption of a new revenue standard “which resulted in higher commissions paid to gaming promoters being deducted from casino revenues.”

Casino revenues for the January to June period dropped 13% to P13.48 billion. This was attributed to the P4.2 billion “more commission paid to gaming promoters and complimentary goods and services deducted from casino revenues,” but was partially offset by higher casino revenues of P2.17 billion.

Revenues from the Nuwa hotel, Nobu Hotel and Hyatt City of Dreams, jumped 164% to P1.37 billion during the first six months of 2018.

On the other hand, operating costs and expenses dropped 9% to P13.56 billion.

Located inside the state-run Entertainment City, the City of Dreams Manila was developed by Melco Resorts Philippines alongside Sy-led Belle Corp.

City of Dreams Manila was the second integrated resort and casino to open in the area, after Bloomberry Corp.’s Solaire Resorts and Casino in 2013.


source: http://www.bworldonline.com/melco-resort...-from-pse/
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9-17

Delisting si MRP...November na

City of Dreams operator sets bourse exit in November

THE operator of City of Dreams Manila plans to exit the Philippine Stock Exchange (PSE) by November, after it conducts next month a tender offer to buy out all minority shareholders.

In a disclosure to the stock exchange late Friday, Melco Resorts and Entertainment (Philippines) Corp. (MRP) said its controlling shareholder, MCO (Philippines) Investments Ltd. (MCO Investments) had filed an initial tender offer report with the Securities and Exchange Commission on Sept. 14.

The tender offer is set to run from Oct. 3 to 30, with the acceptance of shares tendered to be completed by Nov. 7. The shares are scheduled to be crossed from the stock exchange by Nov. 14, depending on the approval of the PSE.

The company named Maybank ATR Kim Eng Securities, Inc. as the tender offer agent for the transaction.

MCO Investments seeks to acquire up to 1.54 billion common shares in MRP at P7.25 apiece, which means it will spend P11.18 billion to buy out all minority shareholders. The company said the exercise will “increase and consolidate its interests in MRP to better support and facilitate MRP’s future business plans.”

The tender offer price represents around a 14% premium over the three-month volume weighted average price of MRP shares.

The tender offer is being conducted as part of MRP’s plans for voluntary delisting, which it announced last Sept. 10. Under PSE rules, MCO Investments must acquire at least 95% of MRP’s outstanding capital stock in order for the local bourse to entertain its petition for voluntary delisting. Should the company fall short of the 95% requirement, it said it will still proceed with the request for voluntary delisting.

MRP noted that the tender offer will allow shareholders to liquidate their investments prior to the company’s delisting. Should shareholders try to sell or transfer their shares in the company once it is out of the PSE, the transaction will be subjected to a capital gains tax and documentary stamps.

The company cited its “inability to raise funds despite considerable efforts and expenses being incurred to maintain its listed status” as the reason for taking its shares out of the stock exchange.

MRP reported a net income of P1.89 billion in the first half of 2018, surging 437% year-on-year. Operating revenues dipped by 1% to P16.54 billion due to the adoption of a new revenue standard “which resulted in higher commissions paid to gaming promoters being deducted from casino revenues.” 


source: http://www.bworldonline.com/city-of-drea...-november/
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9-25

...wala' kawawa naman mga investors, ang baba ng tender offer

Melco bourse exit ‘unfair’ to shareholders, say analysts

SHAREHOLDERS of Melco Resorts and Entertainment (Philippines) Corp. (MRP) stand to lose from the company’s proposed exit from the Philippine Stock Exchange (PSE), as analysts claim that its low tender offer price — just around half its initial share sale price in 2013 — is unfair.

The operator of the City of Dreams Manila is set to conduct a tender offer to buy out minority stockholders in accordance with its voluntary delisting plan. The gaming firm has set a tender offer price of P7.25 each, much lower than its price of P14 apiece when the company conducted an initial public offering (IPO) back in 2013.

“That’s an unfair price now that MRP is starting to earn money… The shareholders, who bought higher or held on to the IPO price, are the losers here,” said Jervin S. De Celis, a trader at Timson Securities, Inc., in a mobile message.

Aniceto K. Pangan, equities trader at Diversified Securities, Inc., echoed this view, saying the pricing will be against the stockholders who planned their investments for the long term.

“It’s unfair for those investors who were offered a higher price during their IPO and follow on offering. Considering they stayed on and saw more of a long term investment from the company, then they are the ones who will lose money here,” he said in a phone interview.

MRP engaged FTI Consulting Philippines, Inc. to conduct a fairness opinion for the tender offer price, which reported a fair market price range of P6.11 to P7.49 per share. The final offer price indicates a premium of around 14% to the shares’ three-month volume weighted average of P6.35 as of Sept. 7.

The stock’s closing price was P6.21 on Sept. 7, or the trading session before the company announced its delisting plan.

The shares to be tendered are currently owned by MCO (Philippines) Investments Ltd. (MCO Investments), which seeks to acquire up to 1.54 billion common shares in MRP at P7.25 apiece, or a total of P11.18 billion.

MCO Investments must acquire at least 95% of MRP’s outstanding capital stock for the PSE to entertain its petition for voluntary delisting, as per PSE rules.

“The shareholders have to talk to the Board to really know the fair price but what makes the tender offer unfair is that their follow on offer price was at P14 five years ago and MRP was not even earning that time. Now that they’re starting to earn, they’re buying back the shares at almost half the price below the IPO price,” Mr. De Celis said.

Philstocks Financial, Inc. Research Associate Piper Chaucer Tan noted that more than the unfair price, investors are worried that their stock will be illiquid once the company delists from the PSE.

“If they don’t exercise the tender offer, first it will be illiquid since it has been delisted in the exchange and you will go directly to the stock transfer office in order to sell it,” Mr. Tan said via text.

He added that once MRP is delisted, stockholders will no longer have an indicative price to base on how much they will sell the shares.

“When the tender offer was made it has a indicative price. If you don’t exercise, you don’t have a reference price and MRP will determine the price per share of your stock position or even they can value it below the tender offer price which is at P7.25,” Mr. Tan explained.

MRP said that should it fail to comply with the 95% requirement for the tender offer, it will still proceed with its petition for delisting.

MRP’s tender offer is scheduled to run from Oct. 3 to 30, with the acceptance of shares tendered to be completed by Nov. 7. The company then targets to cross its shares from the exchange by Nov. 14, as per PSE approval.


source: https://www.bworldonline.com/melco-bours...-analysts/
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10-3

...new timetable daw

Tender offer for Melco Philippines shares deferred

THE majority shareholder of Melco Resorts and Entertainment (Philippines) Corp. (MRP) has deferred its plan to conduct a tender offer, effectively pushing back the company’s plan to delist from the Philippine Stock Exchange (PSE).

In a disclosure posted on Tuesday, MRP said MCO (Philippines) Investments Limited has informed the company that it is pushing back the tender offer originally scheduled for Oct. 3.

MCO Investments was supposed to buy back 1.57 billion common shares from the public at a price of P7.25 apiece during the tender offer period.

The company did not disclose the reason for the tender offer’s delay. BusinessWorld reached out to MRP to clarify the matter but it has yet to respond as of press time.

A number of analysts have previously complained about the low tender offer price set by MCO Investments, which they noted would be unfair to the public who invested in the company during its follow-on offering in 2013, when each share was priced at P14.

MRP however clarified in a earlier disclosure that the tender offer price was independently determined by MCO Investments through the services of FTI Consulting Philippines, Inc. Taking into account MRP’s historical and projected earnings while using market-standard methods recognized by regulators, FTI Consulting arrived at a fair value price range of P6.11 to P7.49, with the final tender offer price at the higher end of the range.

The company also explained that investors will experience “very different financial outcomes” depending on when they purchased MRP shares.

“For instance, while investors who purchased MRP shares above the tender offer price will experience a loss (if they decide to tender their MRP shares in the tender offer), investors who purchased MRP shares at the all-time low trading price of P1.15 in January 2016 or at the more recent closing price of P5.05 on July 5, 2018 will have realized a significant gain if they decide to tender their MRP shares in the tender offer process,” the company said.

It also noted that the tender offer price represents a 16.7% premium over MRP’s closing price of P6.21 each on Sept. 7, the trading session prior to its announcement of its plan to delist. Further, the tender offer price is 11.2% and 14.2% higher than the six-month volume weighted average price (VWAP) and three-month VWAP of MRP’s shares. In September, MRP announced it will apply for the voluntary delisting of its common shares from the PSE, with the tender offer initially scheduled for Oct. 3 to 30. The company targeted to cross its shares from the PSE by Nov. 14, depending on the necessary regulatory approvals.

MRP generated a net income of P1.89 billion in the first six months of 2018, 437% higher than the same period a year ago due to improved operating results and lower interest expense. Operating revenues however slipped by one percent due to the adoption of new revenues standards.


source: https://www.bworldonline.com/tender-offe...-deferred/
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10-9

...lugi mga kumuha ng follow-on offering tsk tsk

Melco Resorts told to discuss issues with minority shareholders

THE Philippine Stock Exchange (PSE) has asked Melco Resorts and Entertainment (Philippines) Corp. (MRP) to engage with its minority shareholders to resolve pending issues on its tender offer, which will take the company a step closer to delisting from the local bourse.

“This is the time I was telling them to engage already with the minority shareholders. You also need them to understand so that they can decide and make a decision whether to sell or stay put,” PSE Chief Operating Officer Roel A. Refran told reporters on the sidelines of the GRI Sustainability Summit in Conrad Manila on Monday.

“I think that’s something that has yet to be (decided on) whether it will be in a session or in a forum, or will they welcome all the questions,” he added.

MRP is currently in the process of complying with the requirements for its application to delist from the PSE, including the conduct of a tender offer by its majority shareholder MCO (Philippines) Investments Limited (MCO Investments) to acquire at least 95% of the total shares of the company.

While the operator of City of Dreams Manila has already filed its tender offer report, Mr. Refran said the stock exchange has received several complaints over the tender offer price of P7.25 per share. Analysts noted that this represents a gap from the company’s follow-on offer price of P14 each during its initial fund-raising activity in 2013, among others.

“The more important discussion that needs to flow in, is how can we as investors be assured that this is a fair value,” Mr. Refran said.

MRP clarified in a disclosure last week that the price was based on the valuation and fairness opinion report of FTI Consulting Philippines, Inc., which is recognized by the PSE to make such reports.

“MCO has been informed by FTI that it has followed the relevant guidelines of the PSE and the International Valuation Standards (IVS) in the conduct of this study,” the company said.

Mr. Refran noted MRP would have to iron out the price issues before proceeding with the tender offer.


source: https://www.bworldonline.com/melco-resor...reholders/
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