BIZ BUZZ: Will Belle buy out Melco in COD Manila?
A decade since the grand launch of the $1-billion City of Dreams (COD) Manila, Macau casino tycoon Lawrence Ho hinted that the Melco group may bow out of the Philippines as he spoke to analysts about shifting to an “asset-light” strategy.
If and when Nasdaq-listed Melco Resorts & Entertainment Ltd. exits the Philippines, the most logical buyer of its stake is no other than Belle Corp., landlord of the 1.5-hectare integrated gaming complex occupied by COD Manila and ultimate parent firm of PremiumLeisure and Amusement Inc., owner of half of the operations of COD Manila.
Belle is willing to buy out Melco “if the price is right,” an industry source told Biz Buzz.
It may be recalled that before the pandemic, Belle had called for the expansion of COD Manila, but Melco didn’t seem as gung-ho. Then COVID-19 wreaked havoc for years. These days, the casino industry is recovering, but competition is likewise heating up here and abroad.
Shortly after a top gaming analyst had suggested the sale of its casinos in the Philippines and Cyprus—to fund its expansion in Macau and foray into Thailand—Melco issued a cryptic announcement about the “exploration of strategic alternatives” for COD Manila.
With financial muscle from the SM group, Belle can easily pick up Melco’s shares.
It means shedding the “City of Dreams” brand and losing Melco’s junket following, but it’s an opportunity to find a new partner that’s willing to invest more and stay for the long haul.
