Travellers International, Resort World Manila’s the management company, is now much closer to getting the company private. The group announced their shares will no longer be available for trading effective October 21 in a disclosure to the Philippines Stock Exchange (PSE).
Rappler notes that the announcement came on October 14 and came after the stock exchange board decided to voluntarily delist at a meeting on October 9.
Originally, the owner of Resorts World Manila announced their intention to take over the private company in August when they revealed that they would buy back 1,58 billion shares at P11 ($0.21) each to achieve their goal. They agreed, however, to sell only P5.50 ($0.11) at one point, reducing their investors a little.
Travelers said the reason for taking the company private is to make it more versatile and allow the evolving gambling industry in the Philippines to have a faster reaction time. But that’s not the whole story, as the company also had trouble keeping a minimum 10 percent public float, the amount of the company that the government should own.
Such factors may all play a key role in how much funding Resorts World Manila can get in the near future, but it will have no impact on the casino’s success. This year’s financial reports also shown that the economy has been improved by the rising Manila casino industry, with Resorts World doing well in the first quarter of 2019. In the first half of 2019, the gross gaming revenue increased by 53.8 percent, while Travellers as a whole saw its profits decline.
We are not the only operator to have recently decided to take themselves private In July 2019, Melco Resorts took the decision to delist. They had failed to maintain a public float of 10 percent, but also had declared their intention to go private. Given that neither casino is doing badly they should be doing quite well as private firms.