Mar 23, 2023 Newsdesk Latest News, Philippines, Top of the deck
Philippine casino resort operator Bloomberry Resorts Corp says it has terminated an initially non-binding agreement – known as a term sheet – to invest in a unit of another Philippine business, PH Resorts Group Holdings Inc, that is developing two gaming resorts in respectively Cebu and Clark in that nation.
According to a Wednesday filing by Bloomberry to the Philippine Stock Exchange, the term sheet was with PH Travel and Leisure Holdings Corp.
PH Resorts’ parent is Philippine conglomerate Udenna Corp, controlled by local entrepreneur Dennis Uy.
The Bloomberry filing said: “The company has decided to terminate the term sheet with PH Travel and Leisure Holdings Corp dated May 6, 2022 relating to the investment in Lapulapu Leisure Inc and Clark Grand Leisure Corp and their Emerald Bay project and Clark project after considering the results of due diligence on the target companies and the projects.”
The filing did not elaborate on the results of such “due diligence”.
Bloomberry, headed by ports investor Enrique Razon, controls Solaire Resort and Casino at Entertainment City in the Philippine capital Manila; and is also building a new resort near Manila, at Quezon City, which is currently due to open in the first quarter of 2024.
Lapulapu Leisure is developing the Emerald Bay Resort Hotel and Casino (pictured in a file photo) in Punta Engano, Lapu-Lapu City, Cebu. Parent PH Resorts had said in May last year the casino resort was to be developed “in two phases”, with the first “expected to be completed in the first quarter of 2023”. The firm did not provide further detail on the project since.
Clark Grand Leisure is developing the Base Resort Hotel and Casino, in Clark, Pampanga. In October 2021, PH Resorts had stated the country’s gaming regulator had approved a request of a PH Resorts unit to suspend the provisional gaming licence for its Clark casino, so that the group could “focus all efforts” on developing Emerald Bay in Cebu.
In a separate filing on Wednesday to the Philippine Stock Exchange, PH Resorts confirmed it had received a letter from Bloomberry terminating the term sheet.
The filing quoted PH Resorts president Martin M. Escalona has saying that, “while it is unfortunate that a deal was not closed, this now allows both parties to pursue their own plans”.
He added: “This development gives PH Resorts the opportunity to re-enter… discussions with other parties that were previously put [on] the backburner due to the contemplated investment by Bloomberry.”
Mr Escalona did not identify those other potential investors.
PH Resorts said it would “make the necessary disclosures to the public on developments of their discussions with the other parties at the appropriate time.”
In August last year, PH Resorts said it had received from Bloomberry PHP1.0 billion (US$18.4 million) as a “deposit payable” while the talks between the parties continued regarding the Cebu and Clark projects.
Bloomberry posted 2022 net income of PHP5.14 billion, after a net loss of PHP4.25 billion in 2021, the company announced earlier this month.
As for PH Resorts, its net loss for the third quarter of 2022 – the latest set of financial results available for the firm – widened year-on-year to PHP232.6 million, it said in November. The group affirmed at the time a “going concern” warning, due to its current liabilities as of September 30 exceeding its current assets by PHP10.77 billion.
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