MCE (Philippines) Investments Ltd. has infused P2.7 billion in fresh capital into its Philippine subsidiary, Melco Crown (Philippines) Resorts Corp., to support the latter’s investment in its subsidiary which operates City of Dreams Manila.
In a disclosure to the Philippine Stock Exchange, Melco Crown Philippines said its board of directors approved on Thursday MCE’s subscription to 693.5 million common shares in Melco Crown Philippines at P3.90 per share via a private placement.
“MCE [Philippines] Investments Ltd., as a major shareholder of the company, shows its continuous support to the Company and its subsidiaries through the subscription. In addition, the subscription allows the company to raise capital in a most expeditious and efficient manner with the least cost,” Melco Crown Philippines said.
“The proceeds will be used for the company’s additional investment in its subsidiary, MCE Leisure [Philippines] Corp. [MLC],” it added.
Melco Crown Philippines is the local arm of Macau-based casino giant MCE. Its unit MLC directly operates City of Dreams Manila within the Pagcor Entertainment City complex in Aseana City.
In the first nine months of 2015, Melco Crown Philippines posted a wider net loss of P6 billion from a net loss of P4.19 billion a year earlier due to higher costs and expenses arising from the continuous improvement and operating costs of City of Dreams Manila.
As of end-September, City of Dreams Manila has about 265 gaming tables, 1,553 slot machines and 50 electronic table games in operation.
The integrated resort and casino complex hosts three hotels – the 260-room Crown Towers, the 365-room Hyatt International Corp., and the 321-room Nobu Hotel.
It also features family entertainment center DreamPlay by DreamWorks; Centerplay, a live performance central lounge inside the casino; as well as Chaos and Pangaea Ultra-Lounge, two night clubs situated within the architecturally-unique dome-like structure called Fortune Egg.
City of Dreams Manila is owned and operated by the Melco Crown group in partnership with Sy-led companies Premium Leisure Corp., which is in charge of the casino operations, and Belle Corp. and Premium Leisure Amusement Inc., which own the titles and rights to the 30-hectare parcel of land where City of Dreams Manila is standing.