PGasia | PH Resorts Group Announces Termination of Agreement with TRLEI
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PH Resorts Group Holdings Inc, associated with the delayed Emerald Bay casino resort project in Mactan, Cebu, confirmed in a Tuesday filing the termination of a term sheet with Tiger Resort Leisure & Entertainment Inc (TRLEI). The agreement would have facilitated TRLEI’s investment in the project.
TRLEI and its Control Over Okada Manila
TRLEI, a subsidiary of Japan’s Universal Entertainment Corp, currently operates the Okada Manila casino resort in the Philippine capital. PH Resorts, led by Filipino entrepreneur Dennis Uy, announced that Okada Manila’s operator no longer intends to pursue the acquisition of Emerald Bay. PH Resorts President Raymundo Escalona stated: “We understand that the Okada Manila operator no longer intends to pursue the Emerald Bay acquisition. Nevertheless, this development shall give PH Resorts the opportunity to engage with other parties that have already expressed their keen interest in the Emerald Bay project.”
Future Transactions for Emerald Bay
Escalona added: “We assure our shareholders and stakeholders that the company’s management is already working towards another transaction, whether it be an acquisition, joint venture, or otherwise, that will ensure the completion of the Emerald Bay project.” The filing noted that PH Resorts would make the necessary disclosures to the public on further developments at the appropriate time.
Statements from Universal Entertainment
Universal Entertainment, in a statement dated Monday, revealed that TRLEI notified PH Resorts of the termination of the term sheet because certain closing conditions were not met. The Japanese company added: “Due to confidentiality obligations, the company does not provide specific details of this matter.” PH Resorts had clarified in a late June filing regarding a Philippine media story about the talks with TRLEI, stating: “The report that there is a disagreement on commercial terms due to ‘unrealistic terms’ set by the selling party is largely unfounded and not part of the current discussions.”
Universal Entertainment recounted that TRLEI had signed a preliminary agreement on December 8 for the acquisition of the Emerald Bay resort project. The term sheet was with PH Resorts unit PH Travel and Leisure Holdings Corp, aiming to acquire significant majority ownership of PH Travel subsidiaries Lapulapu Leisure Inc. and Lapulapu Land Corp, the entities behind the Emerald Bay scheme. PH Resorts disclosed in April that one of its subsidiaries had received an initial non-refundable payment of PHP300.1 million (US$5.2 million) toward the cost of a stock subscription that would see majority ownership in the operating interest for Emerald Bay pass to TRLEI.
