PH Resorts Group Holdings Inc, linked to the stalled Emerald Bay casino resort project (pictured) in Mactan, Cebu, confirmed in a Tuesday filing the termination of a term sheet with Tiger Resort Leisure & Entertainment Inc (TRLEI) that would have seen the latter invest in the scheme.
TRLEI, a unit of Japan’s Universal Entertainment Corp, already controls the Okada Manila casino resort in the Philippine capital.
PH Resorts is led by Philippine entrepreneur Dennis Uy.
PH Resorts’ president Raymundo Escalona was cited as saying in Tuesday’s announcement to the Philippine Stock Exchange: “We understand that the Okada Manila operator no longer intends to pursue the Emerald Bay acquisition.
“Nevertheless, this development shall give PH Resorts the opportunity to engage with other parties which have already expressed their keen interest in the Emerald Bay project, but have been unable to formalise [such interest] due to the restrictions under the TRLEI deal.”
Mr Escalona added: “We assure our shareholders and stakeholders, however, that the company’s management is already working towards another transaction, be it an acquisition, joint venture, or otherwise, that will ensure the completion of the Emerald Bay project.”
The filing noted PH Resorts would “make the necessary disclosures to the public on further developments at the appropriate time”.
Universal Entertainment had said in a statement carrying Monday’s date that the same day: “TRLEI notified PH Resorts of the termination of the term sheet as certain closing conditions… are not or cannot be fulfilled.”
The Japanese company added: “Due to confidentiality obligations, the company does not provide specific details of this matter.”
PH Resorts had stated in a late June filing, said to be a clarification regarding a Philippine media story about the talks with TRLEI: “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.”
In its Monday statement, Universal Entertainment recounted that its unit TRLEI had on December 8 signed a preliminary agreement for the acquisition of the Emerald Bay resort project.
The term sheet was with PH Resorts unit PH Travel and Leisure Holdings Corp, with the aim of acquiring “a significant majority ownership” of PH Travel subsidiaries Lapulapu Leisure Inc. and Lapulapu Land Corp, the entities behind the Emerald Bay scheme.
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.
A final agreement was to have been signed this month, noted Universal Entertainment in its Monday update.
Universal stated that PH Resorts in 2017 had obtained a provisional gaming licence from the country’s casino regulator, the Philippine Amusement and Gaming Corp (Pagcor).
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.
