MANILA, June 19 Holding company Melco Crown
(Philippines) Resorts Corp said it will raise 5.5
billion pesos ($125 million) to fund its City of Dreams Manila
casino project by issuing new shares to its controlling
shareholder, MCE (Philippines) Investments Ltd.
In a two-step transaction, MCE's new shares will replace
stock it sold overnight in a private placement to an
unidentified investor, Melco Philippines said on Thursday. The
new shares mean MCE's holding will be diluted to 65.29 percent
of Melco Philippines from 72.45 percent before the transaction.
MCE sold 485.177 million shares at 11.30 pesos apiece in its
overnight placement, representing a discount of 7 percent to the
previous closing market price. The shares were equal to a 9.88
percent stake in Melco Philippines.
In the second step of the transaction, MCE will subscribe to
exactly the same number of Melco Philippines shares to be issued
at the same offer price, a stock exchange filing said.
Shares of Melco Philippines were suspended from trading on
Wednesday ahead of the fund-raising announcement. Trading was
scheduled to resume at 10 a.m. [0200 GMT] on Thursday.
The stock last traded at 12.18 pesos before the voluntary
On Wednesday Melco Philippines said its board had approved
an increase in the total budget for City of Dreams project to
about 37 billion pesos from about 28 billion pesos previously.
The City of Dreams Manila, scheduled to open this year, is
part of the $1.3 billion integrated casino resort that Melco
Crown Entertainment Ltd will open this year in
Entertainment City, Manila's version of Las Vegas gaming strip.
(Reporting by Erik dela Cruz; Editing by Kenneth Maxwell)