PH Resorts Group Holdings Inc. announced the termination of its term sheet with Tiger Resort Leisure & Entertainment Inc. (TRLEI) regarding the investment in the Emerald Bay Resort casino project in Mactan, Cebu. TRLEI, a unit of Japan’s Universal Entertainment Corp, operates the Okada Manila casino resort in the Philippine capital.
The development comes a week after PH Resorts refuted media claims about the potential collapse of its ongoing negotiations with the Okada Manila casino resort’s promoter.
In a filing to the Philippine Stock Exchange, PH Resorts’ president Raymundo Escalona stated that the operator of Okada Manila no longer intends to pursue the Emerald Bay acquisition. Despite this setback, Escalona emphasised that PH Resorts will now explore opportunities with other interested parties who were previously restricted due to the TRLEI deal. He assured stakeholders that the company is actively working towards securing a new transaction, whether through acquisition, joint venture, or other means, to ensure the completion of the Emerald Bay project.
Universal Entertainment confirmed the termination, citing that certain closing conditions were not or could not be fulfilled. Due to confidentiality obligations, specific details were not disclosed.
Background of the deal??
The preliminary agreement between TRLEI and PH Resorts was signed on December 8, with the intention of TRLEI acquiring significant majority ownership of PH Travel subsidiaries Lapulapu Leisure Inc. and Lapulapu Land Corp, which are behind the Emerald Bay project. In April, PH Resorts received a non-refundable payment of PHP300.1 million (€4.75 million) as part of the stock subscription deal. A final agreement was expected to be signed this month.
Challenges and responses??
According to reports, the termination was due to disagreements over the project’s valuation. PH Resorts reportedly wanted the buyer to cover the casino’s debts due in July, a condition that Okada Manila did not accept. Following the announcement, shares in PH Resorts dropped by as much as 29 percent, reaching a nine-month intraday low.
New prospects??
PH Resorts had previously engaged in discussions with Bloomberry Resorts Corp about potential investment in several of its casino schemes, but those talks also ended without a deal. Despite these challenges, Escalona highlighted that other companies have shown keen interest in the Emerald Bay project. The company is now looking forward to engaging with these potential partners.??
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