Macau-based Melco Crown is infusing P2.7 billion in fresh capital into its Philippine gaming unit, which owns half of the integrated gaming operations of City of Dreams Manila in Pagcor Entertainment City.
In a disclosure to the Philippine Stock Exchange Friday, listed unit Melco Crown (Philippines) Resorts Corp. (MCP) said MCE (Philippines) Investments Ltd. would subscribe to additional 693.5 million common shares in the company at P3.90 per share.
MCP said it would apply for the listing of the subscription shares after obtaining the shareholders’ approval.
The gaming firm said the infusion by its major shareholder, MCE Philippines, was reflective of its “continuous support to the company and its subsidiaries.”
“The subscription allows the company to raise capital in a most expeditious and efficient manner with the least cost,” the disclosure said.
The proceeds will be used for the firm’s additional investment in subsidiary MCE Leisure (Philippines).
MCE Leisure, a wholly-owned indirect subsidiary of MCP, is one of the co-licensees that developed City of Dreams Manila, an integrated hotel, gaming, retail and entertainment complex, along with SM Investments Corp., Belle Corp. and Premium Leisure Amusement Inc.
The $1-billion 6.2-hectare City of Dreams Manila opened in December 2014. It was the second integrated resort to open after Bloomberry Resort Corp.’s Solaire Resort and Casino.
City of Dreams Manila has six hotel towers—including Nobu Hotel, Crown Towers and Hyatt City of Dreams Manila—with a total of 950 rooms, including VIP and five-star luxury rooms and high-end boutique rooms, suites and villas.
With this deal, the principal shareholders will increase its stake in MCP to 69.11 percent from 64.78 percent. This will bring the public float to 29.64 percent and foreign ownership to 92.89 percent.