Davao-based businessman Dennis Uy is selling off another piece of his crumbling empire built on a mountain of debt during the six years of the Duterte administration.
Ultra blilyonaryo Ricky Razon’s Bloomberry Resorts Corp. (BLOOM) announced that it had signed a “term sheet” on May 6 to take over the Cebu and Clark casino projects of PH Resorts Group Holdings, Inc. (PHR) owned by Uy.
“The term sheet covers the proposed investment of BLOOM into Lapulapu Leisure, Inc. which is developing the Emerald Bay Resort Hotel and Casino in Punta Engano, Lapu-Lapu City, Cebu, and into Clark Grand Leisure Corp. which is developing The Base Resort Hotel and Casino in Clark in Pampanga,” BLOOM said in a disclosure just minutes before the opening of trade.
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Uy is currently selling off part of his assets due to cash and debt problems. Last year, Uy divested his stake in shipping and logistics firm 2GO to the Sy family for P6.6 billion.
He also announced plans to sell assets of his Phoenix Petroleum as “part of its debt management and funding activities.”
BLOOM did not give details of the deal between Razon and Uy, specifically the method of payment; and timing of closing, as it was still subject to several conditions:
* The execution of mutually acceptable definitive agreements;
* Approval of regulators;
* Approval of creditors
* Completion of audited financial statements;
* Corporate approvals; and
* Cooperation on due diligence.
“BLOOM will provide further disclosures, including the possible effect(s)/impact of the transaction on the business, financial condition and operations of BLOOM, when the conditions to closing are completed and the definitiveAgreements are signed,” said BLOOM which currently operates Solaire Casino Hotel in Paranaque City and is building a new branch in Quezon City.
PHR has zoomed 54 percent to P1.48 since dropping to 96 centavos on April 26. Both Bloom and PHR were up early trading.
Construction of PHR’s Emerald Bay casino project in Cebu has been delayed by one year to 2023 due to the company’s debt and cash problems.