The Philippine Stock Exchange has warned casino operator Melco Resorts and Entertainment (Philippines) Corp that it will de-list the company unless at least 10 percent of its stock is floated at the exchange by June 11.
A written announcement issued by the exchange on Tuesday says Melco Resorts Philippines remains in breach of a rule at the stock exchange that requires at least 10 percent of the stock of a listed company to be available to the investing public.
The exchange suspended trading in Melco Resorts Philippines shares on December 10 because of its failure to obey the rule on minimum public ownership, and gave the company until June 11 to put matters right. If no action is taken before the deadline, the company will be automatically delisted.
Melco Resorts Philippines runs the City of Dreams Manila casino resort (pictured), in the Philippine capital.
MCO (Philippines) Investments Ltd was Melco Resorts Philippines’ majority owner before the tender offer that concluded on November 29. MCO (Philippines) Investments had planned to take the listed entity off the stock exchange but encountered resistance from some stockholders and it withdrew its petition for voluntary delisting of the company.
The attempt to take the subsidiary private left just 2.1 percent of Melco Resorts Philippines stock available to the investing public, meaning the company had broken the rule on minimum public ownership.
Asian casino operator Melco Resorts and Entertainment Ltd is the ultimate parent of Melco Resorts Philippines. Listed on the Nasdaq Stock Market in New York, Melco Resorts chairman and chief executive Lawrence Ho Yau Lung – or his family – hold 55.8 percent of the company.
