Melco would delist from Philippine Stock Exchange

Melco’s subsidiary in the Philippines has plans to delist from the Philippine Stock Exchange.

Philippines.- Under an alleged agreement with MCO Investment Limited, Melco Resorts and Entertainment Corp announced a restructuring change in its financial status. According to the Philippine media, the international casino company has plans to delist from the Philippine Stock Exchange (PSE).

The next step for the company would be to approve its majority shareholder, MCO Investment Limited to expand its control over the operations. As the statement published by AGBrief reads, MCO Investment LImited, a company from the Philippines intends to acquire the remaining 27.2% outstanding shares held by the public.

“MCO Philippines decided to delist MRP from the stock exchange as its fundraising ability was not performing as expected in recent years ‘despite considerable efforts and expenses being incurred to maintain its listed status.’,” reads a filing from Melco International Development sent to the PSE earlier this week.

Meanwhile, Bernstein said the transaction should be viewed favourably “as it will reduce some of the complexity in MLCO by eliminating a publicly traded affiliate with limited liquidity and allow MLCO more flexibility in further growing the Philippines business.”