The idea of a buyout of Melco Resorts & Entertainment Ltd’s interest in the City of Dreams (CoD) Manila casino resort in the Philippine capital is “not part of Belle’s plans for the immediate future,” said Philippines-listed Belle Corp, in a Monday filing to the local bourse.
The filing was described as a clarification to a Monday report by the Philippine Inquirer news outlet, which cited an “industry source” suggesting Belle would be willing to buy out the Melco Resorts interest in City of Dreams Manila “if the price is right”.
Melco Resorts runs gaming at the property under a deal with Premium Leisure and Amusement Inc, a subsidiary of Belle. The Belle group received a share of the gaming revenue generated by City of Dreams Manila.
Monday’s clarification stated: “Please be advised that… Belle is not in a position to confirm the accuracy of the statements about a possible exit of Melco from the Philippines.”
But Belle added it “can confirm that any buyout of Melco’s interests in CoD Manila is not part of Belle’s plans for the immediate future.”
On Thursday, just before the publication of Melco Resorts’ fourth-quarter results, the gaming group said it was considering “strategic alternatives” regarding its role in City of Dreams Manila.
Then on the following earnings call that day, Lawrence Ho Yau Lung, chairman and chief executive of Melco Resorts, said such an option was aligned with the group’s aim of moving to an “asset light” investment strategy.
