Belle Corp. plans to reduce its ownership stake in Sinophil—the dormant firm that now holds the company’s gaming investments—to boost the company’s liquidity in time for the opening of City of Dreams Manila later this year.
Belle shareholders agreed to take this step in order to address the importance of Sinophil’s transition as a gaming investment-holding arm and make it more attractive as a potential investment catch with the goal of widening the stock’s public ownership.
Last Friday, the shareholders also came to an agreement to change Sinophil’s name to Premium Leisure Corp., a more fitting name given its new purpose of engaging or investing in gaming-related businesses.
Willy Ocier, chairman of Sinophil and the vice-chairman of Belle Corp., told the reporters, “That’s the most logical step. The fact that Belle doesn’t need to own 90 percent [of Sinophil]; we believe that by owning 67-70 percent, we will be happy with that level,”
According to Ocier, Sinophil will not issue primary shares to raise money in the absence of capital expenditure requirements. This follows a reorganization that will result in its ownership of Belle’s 100 percent stake in Premium Leisure Amusements Inc. (PLA) and 34.50 percent stake in Pacific Online Systems Corp. Instead, Belle would place its own shares to allow more investors to come in.
PLAI is part of the consortium that holds the license for City of Dreams Manila, the integrated resort that Belle and Melco Crown Philippines are building at the Entertainment City of state-run Philippine Amusement and Gaming Corp (PAGCOR).
Sinophil has yet to iron out the final details of the share sale, if it will be a private placement of a public offering, among others.
Bell Corp. has the luxury of waiting for a good market and high demand to arrive. “It depends on the market, if the market is good and the demand is there. If pricing is something Belle is happy with, then we go. If market’s bad and price is not good then we can always wait,” Ocier said.
