PH Resorts Shares Plummet After Resort Deal Crumbles
Shares of PH Resorts Group plummeted yesterday after a deal with Bloomberry Resorts Corp fell through.
Financial markets saw shares for PH Resorts – a subsidiary of Dennis Uy’s – fall to PO 80 per share. That was down from 5.88 percent before news of the investment was announced. Conversely, Bloomberry saw its shares increase to P9.10 – up from 2.13.
Billionaire Enrique Razon Jrmade his decision to pull out of the Philippines deal with tycoon Dennis A Uys business after carrying out due diligence into the potential investment. Had it gone through, Razon jr would have been part of LapuLau Leisure Inc’s Emerald Bay Resort Hotel and Casino in Punta Engano, Lapu-Lapu City, Cebu. The beachfront investment will offer villas and hotel rooms, along with casino facilities, such as 729 gaming machines and146 gaming tables. The development is to be spread over 12.4 acres.
It would also have meant financial interest in Clark Grand Leisure Corp. The company is responsible for the The Base Resort Hotel and Casino development in Clark, Pampanga. Plans for this ambitious venture, just north of Manilla, involved an ‘adventure-themed’ resort with accommodation and over a 4.4-hectare lot in Clark Global City.
Razon, whose Bloomberry Resorts Corp runs the Solaire Resort & Casino in Manilla Bay, signed the original deal with Dennis Uy back in May last year. But he pulled out this week saying his decision was made “after considering the results of due diligence on the target companies and the projects.”
Undeterred PH Resorts, after confirming the deal with Razon’s company was now off the table, said it would continue to seek investors.
President for PH Resorts, Martin Escalona, said: “While it is unfortunate that a deal was not closed, this now allows both parties to pursue their own plans.”
“This development gives [PH Resorts] the opportunity to re-enter into discussions with other parties that were previously put into the backburner due to the contemplated investment by Bloomberry.”
But Bloomberry has other ‘irons in the fire.’ It is about to open it is second Philippine casino resort at its flagship Solaire Resort & Casino. This sits near the Philippines main international airport and involves a hotel tower with 550 rooms, together with casino facilities, such as 200 gaming tables and around 3,000 slot machines. Should all go according to plan, the resort – in the northern Metro Manila suburb of Quezon City – will open in February next year.
