The announcement did not elaborate on what options it was considering. However it did state: “No decision has been made regarding any strategic alternative and there can be no assurance that the exploration of potential strategic alternatives will result in any transaction.”

It added: “Melco [Resorts] 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.”

Melco Resorts’ core assets are based in Macau. The firm also operates a casino resort in Cyprus, and has plans to launch a casino operation in Colombo, Sri Lanka’s capital, later this year.

Melco Resorts Leisure (PHP) Corp, a subsidiary of Melco Resorts, manages and operates City of Dreams Manila based on an operating agreement with Premium Leisure and Amusement Inc, a subsidiary of Philippine-listed Belle Corp.

Armin Raquel Santos, president and chief executive of Belle Corp, said in January that the group was “well-prepared to explore opportunities” in the Clark casino market in the Philippines. “Clark’s strategic location, with accessibility to major foreign tourist markets such as China, Hong Kong SAR, Singapore, South Korea, and Japan, strengthens its appeal as a gaming and tourism hub,” stated Mr Santos at the time.

Belle confirmed in a filing in July last year that Premium Leisure and associates had already “applied for a gaming licence from government regulators”.

Melco Resorts said in its Thursday release it had “retained CBRE Capital Advisors Inc and Moelis & Company LLC as financial advisors to assist in the process of exploring potential strategic alternatives for City of Dreams Manila”.

In a memo in late January, Seaport Research Partners suggested that Melco Resorts should sell its properties outside of Macau in order to reallocate capital. 

“Melco Resorts remains very undervalued, but investor sentiment on the stock is poor and company specific catalysts lacking, unless corporate actions are undertaken,” wrote analyst Vitaly Umansky.

He stated: “Outside Macau, [the] Philippines continues to generate cash [for Melco Resorts] but lacks real growth dynamics due to increasing Manila competition, while Cyprus has been a disappointment.” 

Mr Umansky added: “We remain of the view that Melco would be better off at this stage – with low valuation and high debt – to try to sell its Philippines and Cyprus assets and reallocate the capital.”

According to the analyst, the “most impactful” measures would be “an acquisition of the minority interest” in the Studio City casino resort in Macau, and a “combination” with Melco International Development Ltd, the Hong Kong-listed parent holding company.