ANDREW Tan’s gambling unit Travellers International Hotel Group Inc. said its board of directors has approved the proposal to delist the company from the Philippine Stock Exchange (PSE) in October after only a few years as a listed firm; while its parent firm Alliance Global Group Inc. (AGI) had a flat income during the first half.
In its disclosure to the Exchange, the operator of Resorts World Manila will be delisted on October 15.
“The conversion from a public entity into a private company will allow the company to timely address evolving market demands and rapidly changing customer needs without compromising its business strategies to competition,” Travellers said.
It will make a tender offer for up to 1.58 billion common shares being held by the public other than the firms owned by Tan, including AGI, Megaworld Corp., First Centro Inc., Adams Properties Inc., Star Cruises Philippines Holdings B.V., Asian Travellers Ltd., Premium Travellers Ltd.
Travellers public float was only at 10.03 percent. Its share price closed on Tuesday at P5.43 apiece. Travellers has also been a drag to its parent firm’s profitability during the past quarters.
AGI had a flat income for the six months ending June to P12.5 billion, from last year’s P12.45 billion.
Consolidated revenues rose 15 percent to P82.8 billion, from P71.7-billion last year.
“We believe the Group’s strong top line performance was achieved on the back of a highly favorable domestic economy which cushioned the impact of some challenges in the global market,” Kevin Andrew L. Tan, chief executive officer of AGI, said.
“However, we note increasing cost pressures, some brought about by the very competitive environment, which have impacted on our margins. Despite this, we remain confident that the collective growth strategies we have put in place—largely through product and market diversification, international pursuits for our spirits business and our ongoing expansion projects—are sound and will soon bear fruit,” Tan said.
Its property development and liquor arms both reported higher net income, but Travellers income was cut in half.