Posted on
February 19, 2013 10:20:44 PM [ BusinessWorld Online ]
THE
PHILIPPINE unit of Macau casino company Melco Crown Entertainment Ltd. said
yesterday it plans to sell up to one billion shares as it prepares to develop a
$1-billion casino-resort project with local partner Belle Corp.
Shareholders
of Manchester International Holdings Unlimited Corp., which will be renamed
Melco Crown (Philippines) Resorts Corp., approved the equity offering
yesterday, but terms and conditions and the timing of the offer have yet to be
set, the company said in a filing to the stock exchange.
At
Manchester’s current market price, the sale of a billion shares may raise as
much as P15 billion ($370 million).
Manchester’s
“A” shares open to local investors climbed as much as 10% after the disclosure
on the equity sale. Its class “B” shares, traded by both local and foreign
investors, were up as much as 7%.
Melco, run by
Australian billionaire James Packer and the son of Macau gambling tycoon
Stanley Ho, bought a 93% stake in Manchester, a formerly illiquid stock with
investments in pharmaceutical and real estate businesses. Melco paid Manchester
shareholders P1.3 billion for the backdoor listing.
Melco and
Belle, controlled by the Philippines’ richest man, Henry Sy, formalized their
partnership in October. Belle plans to build an integrated entertainment resort
complex called Belle Grande Manila Bay, which features a 30,000-square-meter
casino in a sprawling gaming complex being developed near Manila Bay. Melco
will operate the casino.
Three other
groups hold casino licenses to operate in the area. Bloomberry Resorts Corp. is
set to open its $1.2-billion Solair Manila Resorts and Casino complex on March
16, while Japan’s Universal Entertainment Corp., and the joint venture between
Genting Hong Kong Ltd. and Alliance Global Group are currently constructing
their casino projects.
At the
meeting, Manchester shareholders approved the following changes to:
• Change of
corporate name to Melco Crown (Philippines) Resorts Corp.;
• Change of
principal office to Liberty Center, 104 H. V. dela Costa Street, Salcedo
Village, Makati City from Canlubang Industrial Estate, Barrio Pittland in
Cabuyao, Laguna;
• Increase in
the company’s authorized capital to P5.9 billion divided into 5.9 billion
shares with par value of P1.00 apiece from the previous P900 million; and
•
Declassification of Manchester’s Class “A” and “B” shares comprising its
existing authorized capital stock into a single class of common shares.
Shareholders
also authorized the following:
• Grant of
authority to Manchester’s board of directors to issue shares out of the
approved increase in authorized capital and to set an equity offering under
terms and conditions to be determined; and
• The
subscription of 2.846 million shares by MCE (Philippines) Investments out of
the increase in Manchester’s authorized capital stock at a par value of P1.00
each, to pay for asset acquisitions.
Manchester
was formed in 1974 as Interphil Laboratories to manufacture, process, and
package drugs, chemicals, pharmaceuticals, and veterinary products. It became a
holding company in 2008, and changed its name Manchester International
Holdings.
The firm’s
“A” shares rose by 70 centavos or 4.96% to P14.80 apiece yesterday from P14.10
last Monday, while “B” shares gained 30 centavos or 2.07% to end at P14.80,
from P14.50 last Monday.
The broader
share index rose nearly 0.6% to hit another record high. The index has broken
through 18 new peaks this year. -- Franz Jonathan G. de la Fuente
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