PH Resorts Group Holdings Inc has labeled as “inaccurate” a Friday media report in the Philippines claiming that its talks with the promoter of the Okada Manila casino resort were “on the verge of collapsing” regarding the latter’s investment in the stalled Emerald Bay gaming resort scheme in Mactan, Cebu.
In a Monday filing to the Philippine Stock Exchange, PH Resorts stated: “As of today, the relevant parties are still working on the transaction with the Okada group, and the process is ongoing since the target date to close such an arrangement, as stated in the article, is still in July.”
PH Resorts also mentioned: “The report suggesting a disagreement on commercial terms due to ‘unrealistic terms’ set by the selling party is largely unfounded and not part of the current discussions between the relevant parties.” Philippine entrepreneur Dennis Uy leads PH Resorts.
Japan-based Universal Entertainment Corp controls Tiger Resort, Leisure and Entertainment Inc (TRLEI), which operates 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 noted that 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 indicated that a unit would “acquire a majority stake in the Emerald Bay project and complete the partially developed Emerald Bay” integrated resort (IR), with the aim to finalize the deal in July.
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 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. Previously, PH Resorts was in talks with Philippine casino operator Bloomberry Resorts Corp about potentially investing in several PH Resorts casino schemes, but the talks ended without a deal.