Minority investors turn down Melco buy-out bid

MANILA, Philippines – Manchester International Holdings’ minority shareholders turned down a buy-out offer from Macau casino operator Melco Crown Entertainment.

In a disclosure to the stock exchange on Friday, February 22, Manchester, which also serves as a backdoor listing vehicle for Melco, announced that no shares were tendered after the offer expired on February 11. 

The minority shareholders hold 6.94% of Manchester’s total outstanding capital stock. 

Melco, through its units MCE (Philippines) Investments Limited and MCE (Philippines) Investments No.2, offered to purchase the remaining shares at P3.1491 per Class A share and P3.5498 per Class B share.  

The offer price is lower than Manchester’s current market price of P16 per Class A share and P17 per Class B share.

In 2012, Melco acquired a 93.06% interest in Manchester. The company formalized the deal through the purchase of 255.27 million Class A shares and 128.21 million Class B shares held by Interpharma Holdings and Management Corp. and Pharma Industries Holdings Limited. The tender offer was a mandatory move following the purchase.

The entry of Melco reportedly boosted Manchester’s attractiveness to minority shareholders, thereby causing the rejection of the buy-out offer.

Melco group earlier announced plans to manage its Philippine operations through Manchester. Its interests in the country include the $1 billion Belle Grande Manila, a combination casino, hotel, and entertainment complex in PAGCOR’s Entertainment City. The Belle Grande Manila is a joint venture between Manchester and Henry Sy’s Belle Corporation.

The development is expected to open in mid-2014. Early this week, Manchester shareholders approved an equity offering that could generate as much as P16 billion. The money from the equity offering is expected to finance the Belle Grand Manila development. – with reports from Christian Bautists/Rappler.com