GGRAsia – BLOOM settles with GGAM via US$300mln share buyback

BLOOM settles with GGAM via US$300mln share buyback

Mar 19, 2024 Newsdesk Latest News, Philippines, Top of the deck

Philippine casino operator Bloomberry Resorts Corp announced on Tuesday it had reached an “universal agreement” with casino management firm Global Gaming Asset Management LLC (GGAM) to settle several ongoing disputes between parties linked respectively to each of the sides.

The settlement with GGAM requires Sureste Properties Inc – a unit of Bloomberry – to purchase all the Bloomberry shares held by GGAM, for a total purchase price of US$300 million.

The agreed purchase price will amount to PHP18.22 (US$0.32) per share, involving a total of 921,184,056 shares, said Bloomberry in a filing to the Philippine Stock Exchange.

“This settlement will put an end to the dispute of [Bloomberry group] with GGAM which has dragged on for 10 years,” the casino operator stated.

The sell and purchase of the shares will be made through a special block sale.

“The universal settlement will cover all the pending cases between the parties,” including a case in the U.S. in which Philippine entrepreneur and Bloomberry chairman Enrique Razon was also a defendant, stated Bloomberry in its Tuesday filing.

The settlement will also cover court cases opposing both groups respectively in the Philippines and in Singapore, as well as scrap a US$296.6-million award made in 2019 by a Singapore-based arbitration tribunal in favour of the GGAM side, and against the Bloomberry group – Bloomberry was still challenging the award via the court system.

The overall dispute relates to the termination of a management services agreement for the gaming facilities at the Solaire Resort and Casino (pictured), in the Philippine capital Manila, that had existed between several Bloomberry subsidiaries on one side, and entities linked to GGAM on the other side. The latter group has ties to former casino executive William Weidner.

Solaire opened in March 2013. According to information previous disclosed by the Bloomberry side, its subsidiaries had terminated in September 2013 the agreement with Global Gaming Philippines LLC – a subsidiary of GGAM – alleging “material breach” and “failure of discussions”. Global Gaming Philippines claimed the agreement had been wrongfully terminated

Bloomberry is currently developing its second casino resort project in the Philippines. The property, located in Vertis, at Quezon City, is scheduled to open in May this year, the firm confirmed earlier this month.

(Updated at 11.45am, March 22)