Travellers International Hotel Group, the company behind Resorts World Manila (RWM), has decided to go private. The publicly-traded company told the Philippine Stock Exchange (PSE) this past Wednesday that the board and agreed to delist the company and that it will soon present a tender offer to buy back stock held from a majority of shareholders, with the exception of only a handful of entities. Travellers added that the delisting should take place two months from now on October 15.
The company’s board met this past Tuesday and decided to make the move without going into a lot of detail regarding why it is necessary. It alluded to a reason using standard corporate prose without revealing anything, stating, “The conversion from a public entity into a private company will allow the company to timely address evolving market demands and rapidly changing customer needs without compromising its business strategies to competition.”
Travellers will introduce a conditional tender offer to purchase 1.58 shares that are currently issued to stockholders except for Megaworld Corp., Adams Properties, Inc., Star Cruises Philippines, Alliance Global Group, Premium Travellers Ltd., Asian Travellers Ltd, and company directors. As a result of the tender, and as one of the conditions, a minimum of 95% of the common stock has to be transferred to non-public shareholders.
The tender should be ready to be announced by next Tuesday, August 19. Prior to its launch, the details will be presented to the PSE and all pertinent authorities, outlining all terms and conditions of the offer.
Travellers is a joint venture launched by Genting Hong Kong Ltd and Alliance Global Group. When it released its financial report for the second quarter of the year this past Tuesday, it indicated that gross revenue had increased by 44.5% compared with the second quarter of 2018, and that gross gaming revenue had increased by 46.8%. Net profit, however, dropped a massive 51.8% to $11.5 million. This followed a net profit increase of 17% from 2017 to 2018, but Travellers has remained positive on the company’s outlook, saying during the stockholder’s meeting that its growth prospects are high as it continues to expand RWM.
The venue’s performance last year was made more impressive given that RWM had to overcome a major ordeal from 2017. A gambler who had a seriously bad run of luck decided to take his aggression out on the property and its patrons, killing 38 innocent people and trying to burn the casino down. RWM only recently reopened the area where the attack had occurred.
