Melco offers to buy out Manchester minority owners

MANILA, Philippines - Macau casino giant Melco Crown Entertainment Ltd., will make a tender offer to minority shareholders of Manchester International Holdings Unlimited Corp.  (MIH) following the acquisition of 93.06 percent of the shell company.

In a disclosure to the Philippine Stock Exchange, Melco said it would buy the shares at the same price offered to MIH’s majority shareholders.

Melco acquired a total of 28.58 million shares of MIH for P1.26 billion. The sale excluded MIH’s investments in pharmaceutical firm Interphil Laboratories and property firm Lancashire Realty Holding Corp.

The acquisition would result in Melco gaining automatic listing on the local bourse.

Hong Kong-based Melco will use Manchester as its vehicle to manage and operate a $1-billion integrated casino project along the coast of Manila Bay.  The entertainment complex is in partnership with Belle Corp., a leisure developer and gaming firm controlled by the family of retail tycoon Henry Sy.

MIH will be renamed Melco Crown (Philippines) Resorts Corp., subject to the approval of the Securities and Exchange Commission.

A special stockholders’ meeting is set on Feb. 19, 2013 to approve the change of MIH’s corporate name.

Melco, a joint venture between Australian billionaire James Packer and Macau gaming tycoon Lawrence Ho, is investing around $600 million in the project to be sourced from a combination of cash and debt financing.

Belle and Melco will each have an estimated economic interest of 50 percent in the project. Economic interest from the project will be derived from the gaming revenues and the lease of commercial space in the entertainment center.

This would be Melco’s first foray in the Philippine gaming market, which is forecast to hit $3 billion in revenues by 2015.

Ho, co-chairman and chief executive officer of Melco, said the project is a step closer towards realizing the group’s vision of becoming one of the leading gaming companies in Asia.

The deal is also seen to provide Melco with a platform for further expansion in Asia to capitalize on future opportunities that will boost long-term shareholder value.

The success of Macau as a gaming and entertainment destination has led to the proliferation of gaming across the Asia Pacific region.