Capital

Resorts World Manila Operator Announces Voluntary Delisting from PSE, Suspends Trading of Shares

This comes after RWM’s net income declined by 52 percent in the second quarter of 2019.
IMAGE UNSPLASH/WIKIMEDIA COMMONS
Comments

The owner and operator of Resorts World Manila, Travellers International Hotel Group, Inc. (listed on the Philippine Stock Exchange as RWM) requested for the voluntary delisting of the company early on Wednesday, August 14. The proposed date of delisting is slated for October 15, 2019. This will end trading of all the company’s listed shares on the stock exchange.

RWM has also voluntarily suspended trading of RWM shares, which began also on Wednesday at 9 a.m. The suspension will last until 9 a.m. Thursday, August 15. The decision to suspend trading and remove the company’s common shares from the main board of PSE was finalized by RWM’s Board of Directors on Tuesday, August 13. 

The delisting request comes after RWM posted a second quarter net income of P599 million, which is a 52 percent decrease from the same period last year. Due to the income decline incurred in the second quarter, RWM’s conversion from a public entity into a private company will allow them to “address evolving demands and rapidly changing customer needs without compromising its business strategies to competition,” according to the company disclosure.

ADVERTISEMENT - CONTINUE READING BELOW

In line with the Securities Regulation Code and delisting rules of the PSE, RWM will conduct a tender offer for all common shares held by its public shareholders. This tender offer does not include the company’s non-public shareholders such as Megaworld Corporation, Premium Travellers, Ltd., the board of directors, etc. 

The tender offer will commence on Monday, August 19, priced at P5.50 per share. 

In 2013, RWM listed its initial public offering price at P11.28 per share.

The company attributes the sharp decline of its second quarter income to higher finance charges and an increase in depreciation expense amid plans to expand the hotel compound.

At the start of 2019, RWM added another hotel, Sheraton Manila, to its roster, which already includes Marriott Hotel Manila, Maxims Hotel, Hilton Manila, and Holiday Inn Express Manila Newport City. Due to the additional 747 hotel rooms, average occupancy rate of RWM fell to 77 percent, down from 81 percent of the same period last year. Another hotel, Hotel Okura, is expected to launch in RWM by the first quarter of 2020.

ADVERTISEMENT - CONTINUE READING BELOW
Comments
About The Author
Anri Ichimura
Staff Writer, Esquire Philippines
View Other Articles From Anri
Comments
Latest Feed
 
Share
 
Share
How do you dress formally in a relaxed office environment? Here's your answer.
 
Share
In our new Style Archive series, we canonize the menswear heroes of yesteryear.
 
Share
 
Share
Time to add these comebacking retro trainers to your collection.
 
Share
The 25th Bond film, starring Daniel Craig, is set to debut on April 8, 2020.
 
Share
Environmentalists say the fires were started by humans.
Load More Articles
Connect With Us