Melco makes tender offer

MANILA, Philippines - Macau casino giant Melco Crown Entertainment Ltd. is acquiring the minority shareholders’ stake in Manchester International Holdings Unlimited Corp. for P3.1491 per class A share and P3.5498 per B share.

The move is pursuant to the mandatory tender offer rule provided under the Securities Regulation Code following Melco’s acquisition of a total 28.58 million shares or 93.06 percent of MIH for P1.26 billion.

Acquisitions involving 35 percent or more of a public company are subject to the tender offer rule.  This means that the buyer must buy the remaining shares held by other investors at the same price afforded to the majority owners.

Based on its tender offer report filed with the Philippine Stock Exchange, Melco offered to purchase all of the remaining 17.426 million A shares and 11.15 million B shares held by the public, comprising 6.94 percent of MIH.

MIH A and B shares plunged yesterday to P10.98 per share and P11.08 per share, respectively, after Melco announced the tender offer price, which was a steep discount to the stock’s current price.

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