Melco Crown ups budget for City of Dreams Manila to P37-B

Posted at 06/18/2014 12:24 PM | Updated as of 06/18/2014 6:48 PM

MANILA, Philippines - Melco Crown (Philippines) Resorts Corp. on Wednesday said it is raising its budget for the development of its casino complex City of Dreams Manila by P9 billion.

In a disclosure to the stock exchange, MCP said its board approved the increase in the total budget for City of Dreams Manila to approximately P37 billion ($832 million at exchange rate of $1:P44.50).

The original budget for the project was set at around P28 billion ($680 million based on the then exchange rate of $1:P41).

To raise the additional funds for the project, MCP said its controlling shareholder MCE Philippines Investments will sell some of its existing common shares in the company.

MCP requested for a one-day trading suspension ahead of the fund raising exercise.

"Melco Crown (Philippines) Resorts Corporation would like to request the voluntary suspension of trading of the Corporation's shares of stock in the PSE starting on the opening of trading on 18 June 2014 in anticipation of an announcement of a possible fund raising exercise that will be made which may materially affect market activity as well as the trading prices of the shares," the company said.

The trading suspension on MCP shares will be lifted on Thursday (June 19).

MCP had earlier raised P15 billion from a private placement last December.

The local unit of Hong Kong's Melco Crown Entertainment Limited is currently developing City of Dreams Manila in Pagcor's Entertainment City.

City of Dreams will have a Hyatt hotel, Crown Towers Hotel and the first luxury Nobu Hotel in Asia, as well as a the educational and play center "DreamPlay by DreamWorks". The casino complex is expected to open later this year.