BIZ BUZZ: Will Belle buy out Melco in COD Manila?
A decade since the grand launch of the $1-billion City of Dreams (COD) Manila, Macau casino tycoon Lawrence Ho hinted that the Melco group may bow out of the Philippines as he spoke to analysts about shifting to an “asset-light” strategy.
If and when Nasdaq-listed Melco Resorts & Entertainment Ltd. exits the Philippines, the most logical buyer of its stake is none other than Belle Corp., landlord of the 1.5-hectare integrated gaming complex occupied by COD Manila and ultimate parent firm of PremiumLeisure and Amusement Inc., owner of half of the operations of COD Manila.
Belle is willing to buy out Melco “if the price is right,” an industry source told Biz Buzz.
It may be recalled that before the pandemic, Belle had called for the expansion of COD Manila, but Melco didn’t seem as gung-ho. Then COVID-19 wreaked havoc for years. These days, the casino industry is recovering, but competition is likewise heating up here and abroad.
Shortly after a top gaming analyst had suggested the sale of its casinos in the Philippines and Cyprus—to fund its expansion in Macau and foray into Thailand—Melco issued a cryptic announcement about the “exploration of strategic alternatives” for COD Manila.
With financial muscle from the SM group, Belle can easily pick up Melco’s shares.
It means shedding the “City of Dreams” brand and losing Melco’s junket following, but it’s an opportunity to find a new partner that’s willing to invest more and stay for the long haul. —Doris Dumlao-Abadilla
Miru mystery
With less than three months to go before voters troop to the polling stations for the exciting 2025 midterm elections, one grave concern is bubbling to the surface: Why hasn’t the automated election system (AES) been certified this close to the elections?
According to Biz Buzz sources, Pro V&V, the Alabama-based firm responsible for certifying the AES system, is having a hard time signing off on the software from Miru—the South Korean company that bagged the P18-billion deal to collect and count votes in the upcoming May 12 elections.
Because of this, the software hasn’t been kept in escrow with the Bangko Sentral ng Pilipinas (BSP).
This is a potential violation of electoral law, as election rules demand that this process be completed at least three months before the election.
But guess what? That deadline already passed on Feb. 12. Uh oh.
Perhaps Pro V&V is hesitant because of the “many issues” surrounding Miru, whose contract is still being challenged before the Supreme Court.
But any further delays will be costly, as the preparedness of bodies like the Commission on Elections (Comelec) is essential to ensuring a smooth, credible election.
Mountain Province Rep. Maximo Dalog Jr., who chairs the House committee on suffrage and electoral reforms, said as much in a Feb. 24 letter to Comelec Chair George Erwin Garcia and the six other Comelec commissioners, seeking updates.
Dalog’s letter specifically asked about the AES certification status from both the international certifying entity and the technical evaluation committee.
Dalog also wanted to know when the source code for the AES software would be deposited in escrow with the BSP—to make sure it’s the same code that’s actually running on the vote-counting machines (VCMs).
“Kindly note,” Dalog reminded Comelec in the letter, “that the law requires a certification that the source code is kept in escrow with the BSP and another certification that the source code reviewed and certified is one and the same as that used and installed in the VCMs.”
Let’s see what the Comelec will say about these concerns, which, if unresolved, may cast doubt on the entire election process.
Indeed, what’s taking so long? Abangan! —Tina Arceo-Dumlao
