Request for Delisting

On May 10, Premium Leisure Corp, a company listed on the Philippine Stock Exchange (PSE), formally requested the voluntary delisting of its shares from the main board of the exchange, effective July 9. The request was filed with PSE President and CEO Ramon Monson.

Investment in City of Dreams

Premium Leisure Corp is known for its investment in the City of Dreams Casino Resort located in Manila, the capital of the Philippines. Through one of its subsidiaries, Premium Leisure earns a portion of gaming revenues generated by City of Dreams Manila. Additionally, the company has connections to Belle Corporation, another entity listed on the Philippine Stock Exchange.

Acquisition by Parent Company

In March, Belle Corporation, the parent company, announced its intention to facilitate the voluntary delisting of Premium Leisure from the stock exchange. Belle Corporation offered to acquire all outstanding common shares of Premium Leisure at Php0.855 per share. This acquisition process concluded on May 9, with Belle Corporation paying just under Php5.25 billion (approximately US$90.7 million) for more than 6.17 billion outstanding common shares of Premium Leisure, representing about 19.77% of the company's total outstanding common shares. Consequently, Belle Corporation now holds a controlling interest of 99.55% in Premium Leisure.

Financial Performance

Despite its involvement in the lucrative gaming industry, Premium Leisure reported a decline in net income for the first quarter of 2024. The company's net income stood at just under Php279.5 million, reflecting a significant decrease of 55.3% compared to the same period last year. Premium Leisure attributed this decline to a decrease in Manila's share of gaming and entertainment revenues from City of Dreams, which amounted to Php401.2 million for the first three months of 2024, down 43.9% from the same period last year.

Implications

The voluntary delisting of Premium Leisure from the PSE, facilitated by its parent company Belle Corporation, signifies a strategic move in the company's restructuring efforts. Despite the decline in financial performance, Belle Corporation's acquisition of Premium Leisure's shares indicates confidence in the long-term prospects of the company and its investments in the gaming industry.