Melco Resorts and Entertainment (Philippines) Corporation, which operates the City of Dreams Manila casino, announced its delisting from the Philippine Stock Exchange (PSE).

In a filing, MCO (Philippines) Investments Limited, the majority shareholder of Melco Philippines, declared it will be conducting a tender offer for 1.5 billion shares, constituting 27.23% of Melco Philippines’ outstanding capital stock, at PHP7.25 ($0.13) per share, for a total of PHP11.2 billion ($207.4 million).

Parent company Melco International Development Limited, in a filing with the Hong Kong Stock Exchange, said that MCO “viewed the listed status as an important tool allowing [Melco Philippines] to raise funds in the Philippines public market, in order to provide capital for expansion and other business plans. However, [MCO] believes that [Melco Philippines’] listed status in recent years has not contributed to its ability to raise funds despite considerable efforts and expenses being incurred to maintain its listed status.”

The company noted that the offer price “is towards the high-end of the range of fair market price per [Melco Philippines] share as opined by an independent valuer and represents an approximately 14% premium over the three-month volume weighted average price of the [Melco Philippines] Shares ended on 7 September 2018.”