Melco Crown Entertainment Ltd. (MPEL)’s Philippine unit is seeking to raise as much as $129 million selling shares after it increased the budget for its Manila casino by about a third to 37 billion pesos ($840 million).
Melco Crown (Philippines) Resorts Corp. is offering as many as 485.2 million shares at 11.30 pesos to 11.70 pesos each, according to terms for the deal obtained by Bloomberg News. The budget for City of Dreams Manila, one of four casinos being built in the Philippine capital’s gaming district, was raised from 28 billion pesos, the company said in a stock exchange filing today.
Trading of Melco Crown Philippines (MCP) shares were suspended from 9 a.m. today at the company’s request. The price range represents a 3.9 percent to 7.2 percent discount to its closing price of 12.18 pesos yesterday. The company said it seeks to resume trading in the shares tomorrow.
In October last year, the Hong Kong-based company said it would increase the budget for the Manila casino it’s building with Philippine billionaire Henry Sy by 10 percent to $680 million. Melco Crown, a venture between Macau gambling tycoon Lawrence Ho and Australian billionaire James Packer, is expanding overseas as it sees constraints on developments in Macau.
Melco’s casino will be the second of four casino resorts to open in Manila’s Pagcor City, a gaming district being built along Manila Bay as the Philippines pushes to increase its share of Asia’s casino revenue.