Melco Resorts and Entertainment Philippines on Thursday announced it will be implementing an equity restructuring by reducing the number of shares to increase its value.
In a filing to the Philippine Stock Exchange, Melco said its board of director has approved a measure that will see the number of shares go from 5.9 billion shares to just 11,800 shares.
As a result, the value per share will go from P1 to P500,000 (US$9,677)
“In the event that any fractional shares are created as a result of the reverse stock split, MCO [Philippines] Investments Ltd. will purchase these fractional shares from the stockholders at P7.25 per share,” the company said.
Melco said its equity restructuring will be used to entirely eliminate its deficits.
“The implementation of an equity restructuring by applying a portion of the corporation’s additional paid-in capital of P22.25 billion in end-2018 against its deficit of P134.56 million by end-2018, in an amount sufficient to entirely eliminate such deficit,” said Melco.