In a 3 March filing to the Philippine Stock Exchange, Belle Corp said it has no plans to acquire City of Dreams Manila. It developed and co-owns the integrated resort (IR) with partner Melco Resorts & Entertainment. The $1 billion (PHP57.4 billion/£773 million/€921.5 million) IR opened in February 2015 in Manila’s Entertainment City casino district.
Melco is one of Macau’s Big Six gaming concessionaires. It is considering a sale to free up capital for a casino project in Thailand.
The Thai government continues to amend legislation that would introduce five “entertainment complexes” with gaming in the kingdom. In January, shortly after cabinet members approved the bill, Melco was the first global operator to open a Bangkok office.
Belle leaves the door open for an acquisition
In its statement, Belle said it “is not in a position to confirm the accuracy of the statements about a possible exit of Melco from the Philippines. (But) it can confirm that any buyout of Melco’s interests in COD Manila is not part of Belle’s plans for the immediate future.” That seems to leave room for a turnabout, if the price is right.
No sale price has yet been made public. But financial news site Merkado Barkada, cited by the Philippine Star, said it may be too rich for Belle’s blood. The developer may have waived first refusal “to let Melco learn the hard way on the open market. Let Melco taste the bitter fruit of rejection and sulk back to the negotiating table.”
MB noted that Belle Corp is “the obvious potential buyer”. It owns the land and is a co-licensee of the casino.
“Asset-light strategy” a prelude to Thai entry
In a fourth-quarter earnings call on 27 February, Melco chairman and CEO Lawrence Ho said it is “part of our strategy to be asset-light where we can and capitalise on our investments and reallocate our resources. This will allow us to enhance financial flexibility, strengthen the balance sheet and support our long-term growth initiatives.”
For Q4 2024, City of Dreams Manila posted total operating revenue of $591.1 million, up from $559.8 million in 2023.
The property generated adjusted EBITDA of $140.1 million, compared with $166.2 million in 2023. According to Melco, the drop was “primarily a result of higher operating costs, largely due to an increase in staffing levels to enhance service quality and improve performance.”
Original article: https://igamingbusiness.com/casino/melco-partner-belle-not-buying-city-dreams-manila/
