PH Resorts Group Holdings Inc has described as “inaccurate” a Friday media report in the Philippines that its talks with the promoter of the Okada Manila casino resort were ‘on the verge of collapsing, regarding the latter investing in the stalled Emerald Bay gaming resort scheme (pictured in a file photo) at Mactan in Cebu.
PH Resorts said in a Monday filing to the Philippine Stock Exchange: “As of today, the relevant parties are still working on the transaction with the Okada group and the same is still ongoing since the target date to close” such an arrangement, “as stated in the article, is still in July.”
PH Resorts added: “The report that there is a disagreement on commercial terms as there are ‘unrealistic terms’ set by the selling party is largely unfounded and not even part of the current discussions between the relevant parties.”
PH Resorts is led by Philippine entrepreneur Dennis Uy.
Japan-based Universal Entertainment Corp controls Tiger Resort, Leisure and Entertainment Inc (TRLEI), which runs the Okada Manila complex in the Philippine capital.
The article published by InsiderPH.com stated: “Weeks before the target deal closing in July, industry insiders revealed that talks for the Okada Group to rescue the stalled US$300-million Emerald Bay casino of Uy’s PH Resorts Group are on the verge of collapsing, apparently due to a disagreement on commercial terms.”
The report added: “The problem is not the viability of the project itself but the ‘unrealistic’ terms set by the selling party, one insider said.”
InsiderPH.com said Mr Uy wanted “a premium for his remaining stake in the project and repurchase rights after he sold and leased back the project land to settle massive debts owed to Sy [family]-led China Banking Corp”.
A December filing by Universal Entertainment had said a unit would “acquire a majority stake in the Emerald Bay project and complete the partially developed Emerald Bay” integrated resort (IR). The aim had been to finalise the deal this July.
PH Resorts said in April that one of its subsidiaries had received an initial “non-refundable” payment of PHP300.1 million (US$5.2 million) towards the cost of a stock subscription that would see majority ownership in the operating interest for Emerald Bay pass to TRLEI.
“Observers are closely watching to see if the deal can be salvaged or if Uy’s casino plans will strike out,” stated the media outlet.
At one stage PH Resorts was in talks with Philippine casino operator Bloomberry Resorts Corp about the latter possibly becoming an investor in several PH Resorts casino schemes, but the talks ended without a deal.
