LRWC unwinding share trades after dividend error

The Philippine Stock Exchange allowed shares of Leisure & Resorts World Corp. to resume trading following a three-day suspension after the company began implementing a pledge to help investors unwind trades made when the company misstated the dividend it would pay. Fifteen times as many shares changed hands as usual after the company said July 29 that it would pay a dividend of 40 centavos a share when it meant to say 4 centavos.

The company last month began junket operations at the Midas Hotel and Casino in Manila, with an initial focus on South Koreans, the biggest foreign market for Philippine casinos, and a sub-agent agreement with Gurutech Asia Inc. LRWC bought half of the casino hotel last year. The company also raised 1.65 billion pesos ($37.9 million) in July through the sale of preferred shares, with Government Service Insurance System, a government pension fund, subscribing for nearly half the offer. Shareholders have approved the issue of another 250 million pesos of preferred shares for the fourth quarter that will raise half the funds needed for an expansion project at Midas that will add to its gaming area.

LWRC said it had started earning income from the 30 percent interest it holds in rental revenues from the Belle Grande Manila Bay thanks to the 4 billion pesos it provided Belle Corp. for the project. The company is also ramping up the introduction of electronic bingo machines at its bingo parlors, which account for about half its earnings.