By Jenniffer
B. Austria | Posted on Jul. 10, 2013 at 12:02am | manilastandardtoday.com
Travellers
International Hotel Group Inc., a joint venture between Alliance Global Group
Inc. of business tycoon Andrew Tan and Genting Hong Kong Ltd., has deferred a
plan to sell P42 billion worth of shares originally scheduled this month due to
unfavorable market conditions.
“In view of
the current market conditions, the company decided to postpone the
implementation of its IPO. We shall inform your good office when the company
decides to resume its IPO as soon as more favorable market conditions occur,”
Travellers International said in a letter to the Philippine Stock Exchange.
Informed
sources said Travellers International was originally scheduled to list its
shares under the first board of the PSE on July 19.
The share
sale would have been one of the biggest IPOs this year.
Global
markets are currently volatile after the US Federal Reserve said it would start
reducing its economic stimulus because of the improving US economy. The
Fed announcement resulted in massive
outflows of foreign funds from emerging markets, like the Philippines, to
developed economies.
The PSE board
in a meeting on June 26 approved the IPO plan of Travellers International. The
company plans to sell 1.8 billion shares at an offering price of up to P23.38
apiece.
They consist
of 1.572 billion primary common shares and 235.983 million shares for
overallotment, which are exercisable within 30 days after the listing date.
Travellers
International tapped Merrill Lynch, CIMB, Maybank, Religare Capital Markets and
UBS as underwriters for the planned offering.
The company
said it plans to use proceeds from the sale of primary shares to partially
finance the P24.7-billion expansion of Resorts World Manila and debt repayment.
Travellers
International operates Resorts World Manila, the first integrated leisure and
resort property in the Philippines that combines privately-operated gaming
facilities with hotel, retail, dining, entertainment and other leisure
amenities.
The expansion
of Resorts World Manila involves the construction of a grand ballroom and
convention center, and additional rooms in Marriott Hotel.
The
11,000-square meter and the 2,000-seater convention center will cost P7.28
billion. The two projects are expected to be completed by September 2014.
Travellers
International is currently developing 10-story annex to the Marriott Hotel with
a 3,000-sq. m. space that will add 227 rooms. Capital spending is estimated to
reach P1.92 billion, with completion expected this month.
The second
phase of the expansion costing P15.54 billion involves the construction of two
new hotels—Sheraton and Hilton Manila.
The two new
hotels will add 912 rooms to Resorts World Manila and a gaming area of 7,995 sq. m.
The second phase is slated for completion by 2017.
________________________________________________________________
