Belle Corporation denies plans to buy Melco's City of Dreams Stake

Belle Corporation denies plans to acquire Melco’s stake in City of Dreams Manila, countering recent news reports.

Belle Corporation has made it clear they have no plans to buy Melco Resorts & Entertainment's stake in City of Dreams Manila any time soon. This comes in response to a Philippine Stock Exchange request for details about a news report.

What Is Melco Planning For City of Dreams? 

An Inquirer.net column suggested that Melco might be planning to leave the Philippines and shift into an “asset-light” approach. The “unnamed source” in the report said Belle would buy if “the price is right.” 

Analysts earlier suggested for Melco to sell its City of Dreams property in the Philippines so it could focus on an expansion in Thailand. Melco is among the throngs of casino giants considering an investment at the Land of Smiles. While this has been said, Melco, over the weekend also maintained that it has not decided on any “strategic alternative” regarding these properties.

“Melco does not intend to comment on or provide updates in relation to this process unless and until it determines that further disclosure is appropriate or required,” its statement, filed in NASDAQ, read. 

Belle Corporation Role With City of Dreams Manila

Belle owns the land and buildings where City of Dreams Manila sits. They rent this property to Melco Resorts & Entertainment, who runs the casino resort. Belle collects rent money from this deal. Belle also owns a company called Premium Leisure and Amusement Inc. (PLAI). This company has a license from PAGCOR (the Philippine gaming regulator) that gives Belle the right to get a share of the money made from casino games.

This is the set up for a lot of casino deals in the Philippines. 

Belle’s Response

In a filing, Belle stated they "cannot confirm" if Melco plans to leave the Philippines. They also clarified that buying Melco’s stake "is not part of Belle’s plans for now."

Their statement directly disputes the news report’s claims.

According to Belle in their filing, "Please be advised that while Belle is not in a position to confirm the accuracy of the statements about a possible exit of Melco from the Philippines, it can confirm that any buy-out of Melco’s interests in COD Manila is not part of Belle’s plans for the immediate future.” 

What It Means

Belle’s wording suggests they aren’t looking to take over Melco’s business at this time. However, they haven’t ruled it out for the future.

If a deal happens, it would require approval from PAGCOR and other regulators. Belle wants to shut down rumors and make it clear they have no immediate plans for major casino deals. Investors should note that Belle’s position contradicts the news report.

Read related article: Melco Urged to Sell Philippines, Cyprus Properties