Melco restructures economic division in the Philippines
Melco Resorts and Entertainment Ltd is evaluating a change in its economic structure in the Philippines.
Philippines.- Melco Resorts and Entertainment Ltd is reportedly planning a change in its economic structure for its Philippine casino. The Asian company is allegedly in conversation with its Philippine company’s partner at the City of Dreams Manila casino resort. The local partner could acquire an “equity stake in the local Melco Resorts operating unit,” as reported by the press.
Melco released a statement last Friday where they confirmed that the company and the Premium Leisure Corp would set a deal “whereby Premium Leisure Corp or its affiliated entities may become equity holders of Melco Resorts Philippines.”
“Under the arrangement, Premium Leisure Corp is entitled to whichever of the following is the greater: either 50 per cent of Melco Resorts Philippines’ gaming earnings before interest, taxation, depreciation and amortisation (EBITDA) after deducting a seven per cent incentive fee paid to Melco Resorts; or 15 per cent of net win in the mass-market segment plus five per cent of net win in the VIP segment,” explained the company to GGRAsia.
Furthermore, representatives of Melco Resorts and Entertainment and the President of Philippines Rodrigo Duterte allegedly met earlier this year to discuss potential business in order to develop the casino industry in this touristic country.
