Philippines-based gaming giant prepares to exit Stock Exchange

Lea Hogg May 14, 2024

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Philippines-based gaming giant prepares to exit Stock Exchange

Premium Leisure Corp, a prominent player in the Philippines’ gaming industry, has announced its intention to voluntarily delist from the Philippine Stock Exchange (PSE), effective from 9 July , 2024. This decision marks a significant shift in the company’s strategic direction, and it has sparked interest and speculation within the industry.

This decision to delist comes at a time of change and uncertainty for the gaming industry. However, it also presents new opportunities for Premium Leisure Corp to redefine its strategic direction and continue its growth outside the constraints of the stock exchange. As the company embarks on this new chapter, industry stakeholders will undoubtedly be watching closely to see how this decision impacts its future trajectory.

Delisting and redefinition

The petition for voluntary delisting was submitted to Ramon Monzon, the President and CEO of the PSE, on May 10. Premium Leisure Corp is a major investor in the City of Dreams Manila, (above in photo), a renowned casino resort in the Philippine capital.?The resort is managed by a subsidiary of Melco Resorts & Entertainment Ltd, and Premium Leisure Corp earns a portion of the gaming revenue generated there.

Premium Leisure Corp is associated with Belle Corp, another company listed on the PSE.?Earlier this year, Belle Corp announced its intention to apply for the voluntary delisting of Premium Leisure Corp from the main board of the country’s stock exchange.?As part of this process, Belle Corp launched a tender offer for all outstanding common shares of Premium Leisure Corp, pricing them at PHP0.85 each.

The tender offer concluded on 9 May, with Belle Corp paying an aggregate consideration of just under PHP5.25 billion (approximately US$90.7 million) for just over 6.17 billion shares.?This acquisition represents about 19.77 percent of the total issued and outstanding common stock of Premium Leisure Corp.?Consequently, Belle Corp now controls 99.55 percent of Premium Leisure Corp.

Despite these significant changes, Premium Leisure Corp’s financial performance has been less than stellar.?The company reported a net income of just under PHP279.5 million for the first quarter of 2024, marking a 55.3 percent decrease from the same period in the previous year.?Furthermore, the company’s share of gaming revenue from City of Dreams Manila in the first three months of 2024 was PHP401.2 million, a decline of 43.9 percent from the prior-year period.