Shares of PH Resorts Group Holdings fell on Wednesday after news that billionaire Enrique Razon Jr. was backing out of an agreement to participate in the Cebu and Clark casino projects of Davao tycoon Dennis A. Uy.
Razon is in charge of Bloomberry Resorts Inc., which runs the Solaire Resort and Casino at the Manila Bay integrated complex. The company’s board of directors has decided to end the term sheet signed with PH Resorts subsidiaries 10 months ago, which ends on May 6, 2022.
Bloomberry verified Wednesday’s BizBuzz column article by saying the deal was canceled after “considering the outcomes of due diligence on the target businesses and the projects.”
PH Resorts, which is a subsidiary of Uy’s Udenna Group, had its share price drop 5.88 percent to P0.80 while Bloomberry saw its share price increase 2.13 percent to P9.10.
While PH Resorts said it had not received any formal notice of the deal termination and implied it was “possible” to finalize the acquisition with Bloomberry, the stock dropped as much as 9.4 percent before recovering.
PH Resorts announced the transaction was dead after market close and claimed it would look for alternative investors.
The petition claims that PH Resorts CEO Martin Escalona is free to follow his own goals, despite the fact that it is regrettable that a settlement could not be reached.
Moreover, “this development offers [PH Resorts] the chance to return into conversations with other partners,” which had been placed on hold because of the potential investment from Bloomberry.
With Razon’s large funds and competence in gaming, the collaboration with Bloomberry was seen as a positive step as casinos began to rebound from the multi-year epidemic slump.
Razon to back Dennis Uy’s casino projects in Cebu, Pampanga
PH Resorts’ affiliates LapuLau Leisure Inc., which is building the Emerald Bay Resort Hotel and Casino in Punta Engano, Lapu-Lapu City, Cebu, and Clark Grand Leisure Corp. Which is building The Base Resort Hotel and Casino in Clark, Pampanga, have signed a term sheet with Bloomberry outlining the latter’s intention to invest in both projects.
Emerald Bay’s construction location is 12.4 hectares of seaside property. There will be 146 table games and 729 slot machines, in addition to hotel rooms and villas.
At Clark Global City, 4.4 acres would be dedicated to The Base, a “adventure-themed integrated resort.”. Thanks for reading! We hope you found this article informative and enjoyable. Don’t forget to check out our other articles on sports, casino, and betting here at onlinesportsbetting.ph. Stay up-to-date with the latest news and trends in the industry by staying.