Emerald Bay casino acquisition falls through

PH Resorts Group Holdings Inc, involved in the stalled Emerald Bay casino resort project in Mactan, Cebu, announced on Tuesday the termination of a term sheet with Tiger Resort Leisure & Entertainment Inc (TRLEI), which would have involved TRLEI investing in the project.

TRLEI, a subsidiary of Japan’s Universal Entertainment Corp, already operates the Okada Manila casino resort in the Philippine capital. Philippine entrepreneur Dennis Uy leads PH Resorts.

PH Resorts’ president Raymundo Escalona stated 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 that the company’s management is already working towards another transaction, whether it be 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 stated on Monday: “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.”

In a late June filing, PH Resorts clarified a Philippine media story about the talks with TRLEI, stating: “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.”

Universal Entertainment recounted that its unit TRLEI had signed a preliminary agreement on December 8 for the acquisition of the Emerald Bay resort project.

The term sheet was with PH Resorts unit PH Travel and Leisure Holdings Corp, aiming to acquire “a significant majority ownership” of PH Travel subsidiaries Lapulapu Leisure Inc. and Lapulapu Land Corp, the entities behind the Emerald Bay scheme.

In April, PH Resorts announced that one of its subsidiaries had received an initial “non-refundable” payment of PHP300.1 million towards the cost of a stock subscription that would transfer majority ownership in the operating interest for Emerald Bay to TRLEI. Universal Entertainment noted in its Monday update that a final agreement was to have been signed this month.

PH Resorts obtained a provisional gaming license from the country’s casino regulator, the Philippine Amusement and Gaming Corp (PAGCOR), in 2017.

Related Posts